Sell Put

Source: Short Put, pg. 97-99, Fontanills, G., trade options online

Usage: You believe GTE is not going down, i.e., you expect GTE to remain where it is or go higher. You believe Implied Volatility is high, you want to receive a high premium to sell the put.

Profits: Stays fixed at premium received, ($275), if GTE stays the same or goes higher than strike price at 60 in graph. Profits decrease as GTE decreases below 60 and eventually is break-even if GTE nears 57.25 at expiration.

Losses: Open ended losses occur if GTE falls below break-even at expiration.

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Quoted profitModel profitQuoted PriceModel price Delta
(Shares)		GammaVegaTheta
$ 37.50 $ 36.97 -2 3/8 -2 3/8 39.8 -4.9672 $ -9.47 $ 2.43

Statistical Volatility Estimate For Probability Calcs: %

Days From TodayProb of ProfitExpected ProfitOdds of Success
20 68.5% $ 49.68 2.0 to 1
40 70.9% $ 60.43 1.8 to 1
Expiration 72.4% $ 70.89 1.6 to 1

Green is current market conditions
X GTE @
Quote = 2 3/8, Model = 2 3/8, Delta = 40, IV = 31.2%, IV_EST = 31.2%, Volume = 20, OI = 176
Bid = 2 1/4, Ask = 2 1/2,