Prices as of 2:49 PM ET, Sep 17. Check the live quote before you send an order.
The put
Skip
Skip the put. The money looks good, but AXP swings more than it pays. Want AXP? Buy shares.
If it goes against you: you buy 100 shares at $310, which after the $692 you keep works out to $303.08 a share. Below $303.08 you are down on the trade. From that day the shares take above is the one that applies.
The order, if you sell it anyway
You get$692 (limit about $6.92)
If it fallsBuy 100 shares at $310
Cash to hold$31,000
Close earlyBuy back at about $0.69 ($69)
Chance you buy the sharesabout 42 in 100
ContractAXP Oct 16 $310 put
ActionSell to open
In your broker app: open the stock → Trade → Options → Sell to open → pick the contract shown here.
Why skip
The put: Oct 16, $310 strike, 29 days out. Pays $692. Roughly a 42-in-100 chance you end up buying the shares.
On paper: 28% a year. That number assumes AXP keeps moving like it did the past two years. Take that away and it is -4% a year. That is why we say skip.
Next earnings Oct 23, after this put ends. We never sell a put across a report.
If you already own 100 shares
Income call
For income on AXP you already hold: sell the Oct 16 $340 call and take $116 now. If AXP climbs to $340 by Oct 16, your 100 shares are sold at $340, so only do it if you're happy selling there.
If it climbs past $340 your 100 shares are sold at $340 and you keep the $116. That is the trade working, not a loss.