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 V swings more than it pays. Want V? Buy shares.
If it goes against you: you buy 100 shares at $370, which after the $785 you keep works out to $362.15 a share. Below $362.15 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$785 (limit about $7.85)
If it fallsBuy 100 shares at $370
Cash to hold$37,000
Close earlyBuy back at about $6.28 ($628)
Chance you buy the sharesabout 44 in 100
ContractV Oct 23 $370 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 23, $370 strike, 36 days out. Pays $785. Roughly a 44-in-100 chance you end up buying the shares.
On paper: 22% a year. That number assumes V 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 27, after this put ends. We never sell a put across a report.
If you already own 100 shares
Income call
For income on V you already hold: sell the Oct 23 $400 call and take $135 now. If V climbs to $400 by Oct 23, your 100 shares are sold at $400, so only do it if you're happy selling there.
If it climbs past $400 your 100 shares are sold at $400 and you keep the $135. That is the trade working, not a loss.