Taking advantage of some high IV here. SMH currently has a 76 IVR, according to TW.
I sold the Sept 15, $82 put for $1.12 credit. This 5.7% below the current price and offers a 1.36% ROC in 52 days. That's about $2.15 in theta decay a day, or possibly more per day if we squeeze out 50% in a shorter time frame.
Same logic as always...get assigned, sell calls, rinse and repeat.
I sold the Sept 15, $82 put for $1.12 credit. This 5.7% below the current price and offers a 1.36% ROC in 52 days. That's about $2.15 in theta decay a day, or possibly more per day if we squeeze out 50% in a shorter time frame.
Same logic as always...get assigned, sell calls, rinse and repeat.
Trade closed: target reached:
I was watching the b/a of my short put here and it was jumping around quite a bit (pretty illiquid). It was hovering around 40-42% of my max win, so I decided to take it. It was using up quite a bit of my buying power as well (IRA, cash secured), but I'm happy to walk away with this.
Closed @ $.65 deb.
Closed @ $.65 deb.