If You Are Bullish On META, Here Is A Credit Put Spread, Expiring On Jul 11, To Consider
As you can see from the bottom section of the trade idea card, this strategy involves selling the 11-Jul-25 655 put and buying the 11-Jul-25 655 put.
Here Are The Highlights Of The Strategy
- Market Price (Credit): 0.80
- Theoretical Value: 0.29
- Theoretical Edge: 12.3%
- Yield Potential: 19.0%
What Needs To Happen?
META Needs To Remain Above 655
At the time of this writing, META was priced at 691.90. To achieve maximum profit from this spread, the stock must maintain a closing price above 655 on the option expiration date of July 11, 2025.
How Much Can You Make?
Max Profit of 0.80 Equates To A 19.0% Potential Return
In such a scenario, both puts would expire worthless, and you would retain the full credit received from selling the spread, which amounts to 0.80. When expressed as a percentage of the amount at risk, this put spread has the potential to yield a return of 19.0% (0.80 credit / 4.20 amount at risk).
What Is The Risk?
META Stock Could Decline
Since this is a bullish strategy, it carries the risk of a stock decline. In this case, the break-even point on the downside is 654.20.
How Much Can It Lose?
Max Loss of $4.20 On A Stock Decline Below $650
If, at the option’s expiration, META’s price drops below the $650 strike, both put options will be in-the-money, causing the spread to be valued at $5.00 .In such a scenario, the max loss would amount to $4.20, assuming no exercise or assignment risks.
In Summary
What Makes This Opportunity Compelling?
This META bull put spread, set to expire on Jul 11, 2025, appears to have a theoretical trading edge and has a potential to generate significant returns while limiting risk.
When Should You Consider This META Bull Spread?
It is important to remember that the outcome is uncertain and that the strategy is of a bullish outlook. The stock has to stay above 655 at expiration to fully pay off.
As always keep in mind that all investments carry risk, and success is never guaranteed.
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Originally Posted June 12, 2025 – Bullish On META? You Might Want To Consider This Credit Put Spread Expiring in 20 Days
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
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Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.
I checked on Meta Options of which their are many. There is no July 11 closing to buy and sell a put at 655. There is no 655 shown. I went on Meta Platforms Class A on NASDAQ. The date they show is July 18 only for July. What is the site you are using ? Regards Gerry Runolfson