01-19-2021, 06:02 PM
Sometimes you just get a stock that keeps working for you. VSTO isn't too risky in my mind but option premiums are good enough to make it an attractive way to play it. I'm comfortable going long at 25 or less for a year or two hold. I've been selling 30 days options since September on VSTO.
In DEC sold FEB19 Strike 20 for $229. Option had 60 days to go. Option still has 30 days to expire and bought it back today for $31. It made no sense to hold it.
Same date I also sold a FEB 19 strike $17.50 for $124. Bought to close today for $21.
With positions closed I sold a strike 25 and a strike 22.50 with the same FEB19 expiration. Collected another $190 total.
This is pretty good mileage out of a low amount of capital. Before this I was selling them a little farther from the money and collecting about $110/mo per contract. Now if I can get one more dip because I only own 35 long shares so far. If the strike 25 will get in the money I can sell more puts where I'd really like to enter long. I suspect earnings will be too solid for that to happen.
This is how I prefer to enter a stock when things go well, with multiple option sells. A lot of times they run away of course and you're left sitting on your hands. I need a few more low dollar stocks because most of my efforts are more conservative large caps.
In DEC sold FEB19 Strike 20 for $229. Option had 60 days to go. Option still has 30 days to expire and bought it back today for $31. It made no sense to hold it.
Same date I also sold a FEB 19 strike $17.50 for $124. Bought to close today for $21.
With positions closed I sold a strike 25 and a strike 22.50 with the same FEB19 expiration. Collected another $190 total.
This is pretty good mileage out of a low amount of capital. Before this I was selling them a little farther from the money and collecting about $110/mo per contract. Now if I can get one more dip because I only own 35 long shares so far. If the strike 25 will get in the money I can sell more puts where I'd really like to enter long. I suspect earnings will be too solid for that to happen.
This is how I prefer to enter a stock when things go well, with multiple option sells. A lot of times they run away of course and you're left sitting on your hands. I need a few more low dollar stocks because most of my efforts are more conservative large caps.