Price is 81% above our fair value of $947 (range $782–$1,137, 4 of 4 models). Being this far above our estimate has had no bearing on what the shares did next, 2022–2026.
Prices as of 11:49 PM ET, Sep 21. Check the live quote before you send an order.
The put
Sell
Sell the Sep 25 $1710 put. You get $2,875 now. In return you must buy 100 shares at $1710 if ASML falls there by Sep 25.
If it goes against you: you buy 100 shares at $1710, which after the $2,875 you keep works out to $1,681.25 a share. Below $1,681.25 you are down on the trade. From that day the shares take above is the one that applies.
The order
You get$2,875 (limit about $28.75)
If it fallsBuy 100 shares at $1710
Cash to hold$171,000
Close earlyBuy back at about $14.38 ($1,438)
Chance you buy the sharesabout 40 in 100
ContractASML Sep 25 $1710 put
ActionSell to open
In your broker app: open the stock → Trade → Options → Sell to open → pick the contract shown here.
Why sell
The put: Sep 25, $1710 strike, 4 days out. Pays $2,875. Roughly a 40-in-100 chance you end up buying the shares.
On paper: 153% a year. That number assumes ASML keeps moving like it did the past two years. Take that away and it is +37% a year. That is why we say sell.
Next earnings Oct 14, after this put ends. We never sell a put across a report.
If you already own 100 shares
Income call
For income on ASML you already hold: sell the Oct 2 $1870 call and take $870 now. If ASML climbs to $1870 by Oct 2, your 100 shares are sold at $1870, so only do it if you're happy selling there.
If it climbs past $1870 your 100 shares are sold at $1870 and you keep the $870. That is the trade working, not a loss.