Conservative option strategies, what did you buy or sell today?

[Otter]

Posted this on what are you buying today thread the other day, but selling cash secured LEAP Puts on PLTR (I went with $25 strike, January 2022 expiry) generates ~24% return immediately just on the premium. Worst case scenario, you own PLTR at an adjusted cost of $19/share (~50% off from today's prices) in a little less than a year.

[crimsonghost747]

(02-10-2021, 10:00 AM)Otter Wrote: Posted this on what are you buying today thread the other day, but selling cash secured LEAP Puts on PLTR (I went with $25 strike, January 2022 expiry) generates ~24% return immediately just on the premium. Worst case scenario, you own PLTR at an adjusted cost of $19/share (~50% off from today's prices) in a little less than a year.

I will probably be copying this. Sounds like a pretty good deal.

[fenders53]

Back to selling some gold puts. Sold NEM puts at strike 58 for $1.11 expiring 2 in weeks. Premiums are good and I believe the div is about 3% if I get assigned. Div will likely go up again soon. NEM is also among the market leaders in silver and copper reserves. It's my favorite PM play. I've sold puts about 10 times and still no assign through the gold price moves. Easy to roll forward and collect more premium/drop strike the few times I needed to. JR minors pay better premiums but I can gamble elsewhere.

[crimsonghost747]

I don't have the balls to follow you on the GOLD and NEM puts through the earnings reports. But I will take a look at them once the reports are out.

[fenders53]

Definitely don't follow me if you think I am trying to time a big spot price move in metals. A gold bug I am not. I am just putting my metals allocation back up to 2-3% and making some income along the way. I sold a lot of puts last summer and fall. I slowed down when it looked a little choppy. I am most interested in NEM because it's hard for them to have bad news with spot prices anywhere near the top of recent range. I do own some Barrick currently but NEM is my preference.

I'll get out of gold when governments stop printing fake money.

[crimsonghost747]

It's not so much about the companies / the idea of the trade. It's more about me being pretty careful with options around earnings releases.
The premiums are always nice but I just don't want to get assigned so better not take on too much risk.

[fenders53]

Agreed. Often very important. Especially higher beta stocks. I play with modified rules when I am trying to get assigned within the next few attempts. I may push my luck hard with ATM strikes for first third of a position, then it can take a while to finish as I try to get the perfect entry. Which I cant possibly know in advance anyway.

If I were you I wouldn't bother with PM options while they appear to be consolidating. I do believe they will creep higher but I don't care if that doesn't begin for six months.

[fenders53]

Added a single SLV yesterday put so not a big play. I had a lot more through the rally off the bottom. Did some more DD on NEM and that is where I want my gold money. Their breakeven was supposed to be sub $1000 in 2020 but Covid safety measures bumped that at least 5% higher. I'm mostly trying to convince myself but every $100 above $1200 gold is $400M FCF. The dividend is very safe barring a very hard gold crash. Their business plan assumes $1200 gold. That seems very secure for the next year or so. Bitcoin replaces gold until it doesn't. I am just not buying that narrative long-term. Buying $50K Bitcoin as a hedge seems like folly to me when it hits the fan eventually.

[crimsonghost747]

(02-10-2021, 10:13 AM)crimsonghost747 Wrote:

(02-10-2021, 10:00 AM)Otter Wrote: Posted this on what are you buying today thread the other day, but selling cash secured LEAP Puts on PLTR (I went with $25 strike, January 2022 expiry) generates ~24% return immediately just on the premium. Worst case scenario, you own PLTR at an adjusted cost of $19/share (~50% off from today's prices) in a little less than a year.

I will probably be copying this. Sounds like a pretty good deal.

So, I ended up making this move today.
Same expiration but I got the $20 strike.

[vbin]

Sold 2 pltr $25 Jan 2022 leap puts for $7.65.

[fenders53]

Still watching PLTR for an option play though it's a little iffy as a conservative move until it pulls back for real. 30 day lows on Momo stocks are still spec. It's getting closer to attractive though.

Sold a MAR strike 30 VSTO on the pullback as the FEBs expire worthless, like every month the past 6 months. Wish I had went in harder on this one but a couple contracts a month has been great when I could catch a 5% premium comfortable enough out of the money. I am sure they are going to kill earnings again next quarter which was my premise in the first place. It just ran 50%+ four months early. Hope it drops more on the gun legislation fear. They sell practically nothing that would be affected.

In the interest of fair reporting I am dancing with utility put sells that expire tomorrow.. I want more shares but near the bottom of course so I am rolling a few forward so I don;t get drawn in all the same day. I slid a few around to transfer some AEP risk to DUK and NEE. I have no idea how this one plays out with interest rates rising. I was weeks early getting serious. As long as I can grab another 1% premium for a month I'll keep adjusting.

Probably sell another gold related put if it drops anymore.

[vbin]

Anyone rotating UTE puts? Thinking to close some PLTR puts today. 60% profits in a day, might take some. ED? WES? Anyone looked at and did some research? UTEs in general seems to be on downtrend.