Followers | 101 |
Posts | 15331 |
Boards Moderated | 3 |
Alias Born | 12/06/2008 |
Saturday, August 20, 2016 3:41:00 PM
I sold the August $4.50 put contract for 30¢. I deal only in cash, no margin. So the money is basically in trust for 60 days and I can't touch it.
Two possible outcomes:
The highest risk outcome is that I end up owning the shares at $4.20, but that's still not as risky as buying the shares for $4.80ish which is where they were entering the trade.
The other outcome is that MDR's stock trades flat to higher which is what happened. Then on expiration I get my cash back as well as keeping the premium I already collected. So that's a net of 6.5% in 60 days for an annualized return of 39%.
Hardest part is to do it again. No one seems to be bidding MDR's options currently. A lot of complacency in the markets in general right now.
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM