02-15-2019, 09:22 AM
(02-15-2019, 07:47 AM)crimsonghost747 Wrote:I rarely go past 45 days selling puts but this one was especially interesting, and some stocks do not sell monthly options anyway. Or they are so low volume that liquidity can cause issues. We'll see how this one goes. The collateral for the cash covered put is drawing 2.3% annualized interest for now, and the $340 premium looks nice in my ultra short bond fund. Everybody is a genius when the market climbs steadily higher. I'll enjoy it while it lasts, and use zero margin.fenders53 Wrote:Thanks. I looked at SIX sometime back but missed the bad earnings report today. Still looks like an opportunity. I took a little different approach but it is my version of going long. Sold a June 52.50 put so I may be in for 100 shares if it is below that in June. Got paid $3.40/SH for the risk today. Just a bit over one full year of dividends received now. I like the risk/reward on this one.While in general I'm not a big fan of selling options far out in time, this one does look quite interesting.
If you don't get assigned it almost 20% annualized, definitely a nice income. (if my math is correct)
If you do get assigned then it gets a bit more complicated but we won't know until June. :p