Selling Oct PUTs

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Analyze the strategy of selling PUTs for October. When a PUT is sold, one has the obligation to buy the stock at the strike price should it close at or below the strike price on expiration. So for 10 contracts (1000 shares), one needs that amount set aside or the amount based on the margin requirements set forth by the brokerage in the event the PUT gets exercised at expiration. Or one can buy back the PUT (but to close) to simply close the position.

So assuming 10 contracts for the analysis, calculate the return with margin. Note that the screen capture shows the return without margin.

Also, investigate the probabilities for these positions.
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