One of this week’s Market Taker Edge trades is the Ford Motor Co. (NYSE: F) June 15 Cash-Secured Put. Specifically, the idea of options trading investors is to short the F June 15 Put at $0.40 or higher, while keeping enough cash in your account ($1,460 per contract sold) to buy shares in the case of assignment of the put. F is one of our long-term bullish stocks that we’ve liked for a long time and plan to continue into the foreseeable future.

Here’s how the trade works. If F is trading above $15 a share at expiration, the puts expire and the 40-cent credit represents a profit, of $40 per contract. However, if F is below $15 at expiration the puts will be assigned resulting in a long stock position. If F is below the break-even price of $14.60, the trade is a loser at that point in time. However, that may not necessarily be a bad thing.

This is an atypical edge trade. Generally we like the idea of trades with more limited risk. But this is part of a longer-term trade. In this case, assignment is acceptable. It is a way to acquire F shares at a potentially better price than where it is currently trading. If the puts are assigned, it sets up a potentially very good covered call opportunity by selling out-of-the-money July or August calls after June expiration.

In either event (expiring and taking a profit, or getting assigned and buying stock at a “discount”) this initial trade sets the investor up for benefits down the road.

Dan Passarelli of MarketTaker.com writes the Market Taker Edge options newsletter. Dan has more than 17 years’ experience in the options industry as a market maker, Options Institute instructor and author of “Trading Option Greeks.”