Let’s sell a put on one of our favorite income-generation stocks, footwear maker Crocs (CROX).
Please do not chase the trade by accepting less premium than the “go as low as” price recommended below. Work your limit orders but exercise patience and let the trade come to you.
Current Stock Price: $116.11
Action: Sell to open CROX 23 Jun 106 Put
Recommended Limit: Set your initial limit order at $1.10. You can go as low as $0.95, but please don’t start there and always use limit orders.
Target Closeout Price: $0.40
Expiration: After the close on Friday, June 23
Potential Rate of Return: 1% in 15 days if this option expires worthless