A Defensive 4-Day Cash-Secured Put Trade Start-to-Finish – September 29, 2025
Cash-secured put trades can be crafted conservatively by using deep out-of-the-money (OTM) strikes. On 5/27/2025, I executed such a 4-day trade with NetEase Inc. (Nasdaq: NTES), a stock on our premium member watch list at the time. This article will analyze the reasons for trade entries, strike selection and final trade results.
Why I selected NTES on 5/27/2025
- Located in the software industry segment, ranked “A”
- Had an excellent mean analyst rating (MAR) of 1.41
- No earnings report or ex-dividend date concerns
- All-bullish chart technical indicators
- An elite-performer from a fundamental perspective
- Weekly options available
- Robust implied volatility (33.8%) allowing for significant returns, even in a holiday-shortened week
1-Month Price Chart of NTES vs. the S&P 500
Initial Cash-Secured Put Trade Calculations Using the BCI Trade Management Calculator (TMC)
- The initial time-value return is 0.65%, 59.70% annualized (brown cells)
- The BE price point is $119.22 (yellow cell)
- If exercised, NTES is purchased at a 3.13% discount (purple cell)
Broker Trade Confirmation
Final Trade Status as of 4 PM ET on 5/30/2025
- NTES trading at $121.76
- $1.31 below the price at trade execution ($123.07)
- $1.21 above OTM put strike ($120.00)- option expires OTM and worthless
- Realized final 4-day return of 0.65%, 59.70% annualized
- No need for exit strategy intervention
Discussion
Significant returns can be generated with 4-day cash-secured put trade. Option trades can be crafted to align with all market environments and personal risk tolerance. In the case of NTES, a significant 4-day return was realized despite the share price decline of $1.31/share.
Author: Alan Ellman