Prices as of 2:51 PM ET, Sep 17. Check the live quote before you send an order.
The put
Skip
Skip the put. The money looks good, but MA swings more than it pays. Want MA? Buy shares.
If it goes against you: you buy 100 shares at $560, which after the $920 you keep works out to $550.80 a share. Below $550.80 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$920 (limit about $9.20)
If it fallsBuy 100 shares at $560
Cash to hold$56,000
Close earlyBuy back at about $4.60 ($460)
Chance you buy the sharesabout 38 in 100
ContractMA Oct 16 $560 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, $560 strike, 29 days out. Pays $920. Roughly a 38-in-100 chance you end up buying the shares.
On paper: 21% a year. That number assumes MA keeps moving like it did the past two years. Take that away and it is -3% a year. That is why we say skip.
Next earnings Oct 29, after this put ends. We never sell a put across a report.
If you already own 100 shares
Income call
For income on MA you already hold: sell the Oct 16 $605 call and take $238 now. If MA climbs to $605 by Oct 16, your 100 shares are sold at $605, so only do it if you're happy selling there.
If it climbs past $605 your 100 shares are sold at $605 and you keep the $238. That is the trade working, not a loss.