Duolingo Options Trade Call: Sell $240 Put

12 days ago

Mark Rousen

"What I'm doing is I'm going to be utilizing options by selling a cashsecured put. This is a trade that I alerted within my options edge community last week. Right now, you can sell the 1121, the November 21st $240 put and generate around $7.90 in income, which equates to $790 in income right away. However, by opening this trade, if the stock were in fact to fall, I could be on the hook to buy 100 shares per contract of Duolingo stock at a price of $240 per share, which again I would be happy to do. This would equate to an investment of $24,000 in Duolingo stock."

The speaker outlines an options play on Duolingo (ticker DOL), where he sells a cash-secured put with a $240 strike, potentially acquiring the stock if it drops to that level. This trade is designed to generate immediate income and serves as a conditional entry point, assuming the technical move to $240 materializes.

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