To The Moon

S&P Dow Jones Indices said on Monday that it will include Interactive Brokers in the S&P 500 index when U.S. stocks open on Thursday.$Interactive Brokers (IBKR) $Will replace Walgreens United Boots, which will be taken private by Sycamore Partners.

After the news was announced,Interactive Brokers' shares rose about 8% in after-hours trading, and then the increase narrowed to about 4%. The stock has doubled over the past year and is up 42% year-to-date. WBA edged up 0.5% after hours.

At the same time, brokerages$Robinhood (HOOD) $Shares fell slightly after hours.Some investors had hoped that Robinhood would be included in the S&P 500 index. Robinhood stock has risen nearly 190% since the beginning of the year and has a market capitalization of nearly $96 billion.

Previously, on July 23, Jack Dorsey's financial technology company Block joined the S&P 500 index, highlighting the growing influence of digital payments and cryptocurrencies in mainstream finance. Robinhood, which had high hopes at that time, lost the election. Earlier, Robinhood was not included in the constituent stocks during the routine adjustment of the S&P 500's June quarter and the elimination of Ansys.

S&P Dow Jones Indices also said that also on Thursday, Talen Energy will take over from Interactive Brokers and join the S&P Mid-Cap 400 index. Shares in the independent power producer rose more than 3% after hours following the announcement. With electrification accelerating and the rise of AI data centers, Talen is considered a beneficiary of increased demand for electricity, and its shares are up 76% year-to-date.

In addition, on September 2, Kinetik Holdings will replace Pacific Premier Bancorp and enter the S&P Small Cap 600 Index. Pacific Premier Bancorp is about to be acquired by Columbia Banking System.

In view of this opportunity to be included in the S&P 500 index, investors can seize the opportunity and use option strategies to go long on related targets.

Go Long IBKR with Put Options

Current IBKR price is $62.76 and we can sellExpires September 19, 2025, exercise price 62.5, premium $210Put Option to go long IBKR.

Not only does this strategy profit when IBKR rises, it can still rely on premium to earn gains even if IBKR moves sideways or falls slightly.

Maximum benefit:

If the IBKR stock price is higher than or equal to $62.5 at expiration, the option will not be exercised and you retain your full premium. The maximum gain is $210.

Maximum loss:

If the IBKR share price drops to $0, you need to buy 100 shares at $62.5 for a total cost of $6,250. Subtracting the premium received of $210, the maximum loss is $6,040.

Break-even point:

The breakeven point is $60.4 (i.e. the exercise price of $62.5 minus $2.1 per premium). As long as the IBKR share price is above $60.4 at expiration, you are net profiting.

Advantages:

• The limited gain ($210) is locked in at the outset;

• Higher winning rate, as long as the stock price does not fall sharply, you can make a profit;

• If you want to buy IBKR stock in the first place, this way can reduce the cost of buying. Risk warning:

• Profit and loss are asymmetric, the maximum income is limited, but the potential loss is large;

• Requires a margin account to support selling naked Put;

• Closing positions before expiration or rolling operations can be considered to dynamically manage risk.