From investors to air travelers, many Americans are being forced to deal with the aftermath of this massive IT outage. One-time cybersecurity darling Crowdstrike (CRWD) is under fire. As a trader, I wanted to use the wild swings from this historic disaster as an opportunity to generate income and potentially own the cybersecurity giant at a lower price. CrowdStrike’s stock price fluctuated sharply on Friday. CRWD 1D mountain CrowdStrike, 1-day risk happens quickly, and to capture volatility (either on the downside or on the upside), I prefer to use options to make a point. My view is that cybersecurity will continue to be a favored theme for global investors. I’d like to sell the higher option premiums in CrowdStrike as we seek to take advantage of this historic move. Trade (Sell Put Spread) Sell $300 put with regular expiration on 8/16/24 for $14.00 Buy $250 put with regular expiration on 8/16/24 at $3.50 This put spread charges $10.50 per lot. (CRWD was trading around $307.50 at the time of the strike) Instead of just selling the put, I chose to buy the lower strike price in case this historic event turned into something bigger and resulted in a customer churn. I don’t believe it will come to that, but I have defined the risk now. Disclosure: (Sell Put Spread) All opinions expressed by CNBC Pro contributors are theirs alone and do not reflect the opinions of CNBC, NBC UNIVERSAL, its parent company or affiliates, and may have been previously reported by them on TV, broadcast, online or other media. The above is subject to our Terms and Conditions and Privacy Policy. This content is for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not apply to your particular situation. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. Click here to view the complete disclaimer.
Stocks fall on outage, options trade on CrowdStrike | Real Time Headlines
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