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.

---

BCI Trade Management System (TMS) & Calculator (TMC)

Begin Featured Segment body text here.

This package includes a unique calculator/spreadsheet which allows for initial trade entries and calculations, both per-trade and per-portfolio. The middle section allows for > 20 trade adjustments (exit strategies) and post-adjusted results per-trade and per-portfolio. There is also a trade journal for notes and comments, a great learning tool. The top of the spreadsheet is for covered call writing and the lower section for cash-secured puts.

The package also includes a pdf version of Exit Strategies for Covered Call Writing and Selling Cash-Secured Puts, 27 chapters of position management information. This book is based on the TMC and vice-versa.

Click here for more information.

---

Your generous testimonials

Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:

1. Orlando Money Show

Orlando Resort @ ChampionsGate

October 16 – 18, 2025

• Opening ceremony keynote address
• 45-minute workshop class: Traditional & Low-Risk Covered Call & Cash-Secured Put Trades

Register here.

2. Money Masters Symposium Sarasota Florida

December 1 – 3,2025

Setting Up Option Portfolios Using Stock Selection, Diversification, Cash Allocation and Calculations

Analysis of 6 covered call writing trades

Minimize risk and maximize returns. These are our 2 main goals when crafting our option portfolios. There are several factors we can utilize which will put ourselves in an outstanding position to achieve these objectives. Here is a summary of those factors which will be addressed during this presentation:

• Select elite-performing stocks and ETFs
• Diversity stock positions as well as their industries
• Allocate a similar amount of cash per-position
• Ensure that initial calculations align with strategy goals and personal risk-tolerance
• Once trades are entered, go into position management mode- be prepared for exit strategy opportunities

Registration link to follow.

3. BCI Educational Webinar #9

Thursday January 15, 2026

8 PM ET – 9:30 PM ET

Topic, description and registration information to follow.

 

Begin additional segments text here (like testimonials, events, etc.)