Dash $1.42 sell put, 0.58 buy back, gain 580, 10 contracts, how to do that today, tutor me option using this example

 To achieve a $580 gain today by selling and then buying back 10 put option contracts on DASH, you would execute a "sell to open" transaction and then a "buy to close" transaction, with the gain being the difference in the premium (price) of the options. 

The current price of DASH stock is $215.56 as of January 9, 2026. 

The Options Trade Explained

The scenario you described is a short put strategy for 10 contracts:

• Sell Put (Open Position) at $1.42 per share.
• Buy Back Put (Close Position) at $0.58 per share.

1. Calculate the Profit per Share:
   • Premium received (per share): $1.42
   • Cost to close (per share): $0.58
   • Net profit per share: $1.42 - $0.58 = $0.84
2. Calculate Total Gain:
   • Each option contract represents 100 shares.
   • Total profit per contract: $0.84 x 100 shares = $84.00
   • Total profit for 10 contracts: $84.00 x 10 contracts = $840.00 

In your specific example, the total gain would be $840, not $580.

How to Execute This Today (General Steps)

This strategy works best when you are neutral to bullish on the stock and expect its price to stay the same or rise, causing the put option's value to decrease. 

• Access Options Chain: Log in to your brokerage account and access the options chain for DASH.
• Select Expiration and Strike Price: The prices in your example (e.g., $1.42 and $0.58) are premiums that vary by expiration date and strike price. You would look for a put option with a current "bid" price close to $1.42 per share. For example, a put option with a strike price of $215.00 currently has an ask price of around $1.10 per share.
• "Sell to Open" Order: Place an order to "sell to open" 10 contracts at your desired premium. You receive the cash immediately.
• "Buy to Close" Order: Monitor the position. As the option's value drops (due to time decay or the stock price rising), you place a "buy to close" order when the price is around $0.58 per share. 

Key Insights

• Selling a put option involves taking an obligation to buy the underlying stock at the strike price if assigned.
• Your maximum profit is limited to the initial premium collected.
• If the stock price stays above your strike price until the expiration date, the options expire worthless, and you keep 100% of the premium.
• Options trading involves significant risk, as the potential loss can be substantial if the stock price drops dramatically below the strike price.
• Some brokers may charge fees per contract, which should be considered when calculating your final net gain. You can check for options trading fees on your specific broker's website or the public.com options chain page to compare. 

AI responses may include mistakes. For financial advice, consult a professional. Learn more