05-18-2020, 10:19 AM
(05-18-2020, 09:03 AM)john Wrote: Had ADM PUT to me Friday @ $34.5 It ran up this morning so I sold 100 @ $35.52 then sold a put for 5/29 $34.50 strike for .50
What do you think, ok strategy or should I have let it possibly run more and collected the dividend?
That's pretty much the inverse of what I would likely do. The market gave you the pop to sell a covered call and the stock goes ex-Div tomorrow. Sorry if I caused that move. Your basic plan is to sell a put and if you get assigned sell a call right? A lot of people do that when the numbers works out.
I tend to sell puts when a stock has a few down days, or is actually oversold and I think it might have some support. If I can pick an expiration before an-Ex div I do that very often. I can possibly grab put income, a dividend and shares near a price I picked. Maybe even a covered call soon if it's just an income play and not a core DGI holding.
I suspect ADM is going to drift lower in the near-term so it all may work out well enough for you in the end.