Naked Put Trades With Square (SQ) and CrowdStrike (CRWD)

by | Mar 29, 2021 | Systematic trader

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Price action in technology stocks and the associated options today provided me with the opportunity to sell naked puts that passed my screen. Of the handful of puts that passed my screen, I selected to sell naked puts on Square and CrowdStrike with potential annualized returns of 27.1% and 32.9% respectively. For Square, I sold Apr-16 $180.00 puts and for CrowdStrike I sold Apr-16 $155.00 puts. Given the choice, I would prefer to sell puts on stocks from different sectors to provide a level of diversification but that choice wasn’t available today.

As the price charts reveal, the two underlying stocks are well below their 52-week highs.


Square Naked Put Trade

Square Chart


CrowdStrike Naked Put Trade

CrowdStrike Chart