Prices as of 2:48 PM ET, Sep 17. Check the live quote before you send an order.
The put
Skip
Skip the put. The money looks good, but HCA swings more than it pays. Want HCA? Buy shares.
If it goes against you: you buy 100 shares at $395, which after the $265 you keep works out to $392.35 a share. Below $392.35 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$265 (limit about $2.65)
If it fallsBuy 100 shares at $395
Cash to hold$39,500
Close earlyBuy back at about $2.65 ($265)
Chance you buy the sharesabout 14 in 100
ContractHCA Oct 16 $395 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, $395 strike, 29 days out. Pays $265. Roughly a 14-in-100 chance you end up buying the shares.
On paper: 8% a year. That number assumes HCA keeps moving like it did the past two years. Take that away and it is -7% 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 HCA you already hold: sell the Oct 16 $470 call and take $258 now. If HCA climbs to $470 by Oct 16, your 100 shares are sold at $470, so only do it if you're happy selling there.
If it climbs past $470 your 100 shares are sold at $470 and you keep the $258. That is the trade working, not a loss.