CRSP is admittedly a VERY volatile name, but one with a big future and I believe a CL list stock at GS.
On Friday, I was able to sell the May $45 puts for $1.90.
If I am exercised, my cost basis will be $43.10, which puts it right in the support of the bottom of the last pullback.
I would be OK getting exercised on that and I could exit for a small loss if it violated the low of that prior pullback.
If I don't get exercised, I've earned roughly 4% of the strike price for 4 weeks exposure for a strike that is roughly 20% OTM.
I can live with that, too, as one will come close to making my monthly car payment.
Drawback: There is obviously an earnings report between now and expiration.
Add your thoughts
On Friday, I was able to sell the May $45 puts for $1.90.
If I am exercised, my cost basis will be $43.10, which puts it right in the support of the bottom of the last pullback.
I would be OK getting exercised on that and I could exit for a small loss if it violated the low of that prior pullback.
If I don't get exercised, I've earned roughly 4% of the strike price for 4 weeks exposure for a strike that is roughly 20% OTM.
I can live with that, too, as one will come close to making my monthly car payment.
Drawback: There is obviously an earnings report between now and expiration.
Add your thoughts