Please see the screenshot attached. It is from Optiomistics scanner. I scanned for expensive puts there. First record says to sell Put with a strike 5. The Put price is 2.10. The stock is at 2.77 BALT 2.77 1.5M 20 Dec '14 18 5.00 P 2.10 50 -4.69 1.563 68.75% It says ROI is 68.75%, but there is no any time value (-4.69), where is the profit from? If stock is at 2.77 and I sell 5 strike put then when assigned I will own a stock bought for $5, but its current price is 2.77 (let's imagine it did not change during the period) and I am now down $2.23. I spend $500 (for 100 shares) to buy the stock when assigned. Then I sell the stock to the market for $277. Also I have got $210 from the put sold. So I spent $500 for the stock but got only $487 in return (277+210). And there is no any ROI, but loss, if assigned. Am I correct with the calculation?
Looks like it is not a naked put but covered put with a short stock. Then it makes sense. What do you think?
Any opinions why the scanner did find roi in this spread? If I understand correctly there only can be the loss in both naked put sold at 5 and covered put sold at 5.