r/options
Is selling 280 put on GOOG for Dec 2028 a good idea?
The author asks for opinions on selling naked GOOG Dec 2028 $280 puts to collect $3200 premium, with a breakeven of $248.
- Willing to take assignment at $280, implying long-term value at lower prices.
- Has sufficient margin to cover potential assignment.
- Naked short puts carry significant downside risk if the stock crashes.
- Extremely long duration (2028 LEAPS) introduces high macro and company-specific uncertainty.
Guys I am looking for leaps Dec 2028. Is it a good idea for selling google puts strike 280 ?
Getting premium of 3200$
So ideal price would be 248$
Also I am doing naked Short put
Money is not locked due to short put. But if its assigned I have enough margin to cover the assignment
Your thoughts on this trade
God no
This dude is right
I have enough margin to cover the assignment
That can't possibly go wrong.
Your roi is 3200/28000 = 11% over 29 months. Or less then 5% a year. Worst capital allocation I’ve seen with the risk you take
$3200/29 months= $110/mo.
I think you can easily and safely make >$110 a month selling puts. Not seeing the benefit of the LEAPS
Do it 🤣🤣
nobody in here knows the market 2 years out bro.
put selling not really naked. 0 is the downside. call selling is where people seek tall buildings.
Do it!!! Dats gangsta!!!
Too many variables. What’s the marginable securities you used to back your margins? How many of them? If the portfolio is not well balanced against a tech drawdown, you’ll get pinched from both your margin ceilings and your loss floor of buying the shares for more money than market value. Then it comes to a percentage game: how much of your portfolio can drop before you’re getting a margin call?
Some people already mentioned that the rate of return is not particularly ideal in this trade, but if you’re prepared for these questions then at least you won’t be blindsided by the implication of the trade.
If exercised at $248, the $280 PUT you sold would oblige you to buy 100 stocks for $32 dollars more than their market price - so a loss of $3200 per contract (minus the premium).
Good luck with the trade.
Not if you dont know the answer.
If factoring in taxes (10% long term cap gains vs 35% short term gains) that does change things.
I think you would need to earn $154/mo to break even after taxes. Still easily obtainable by selling weekly or monthly options.
correct. but ideal price is not 248 , its 280 or higher.
by then, aliens have landed, ai has taken over, markets no longer function.
how much will you owe?