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Re: nbm16yankees post# 789

Friday, 08/26/2022 8:57:56 AM

Friday, August 26, 2022 8:57:56 AM

Post# of 810
You are correct in your strategy. If you sell them at .80 and it closes above the strike you keep the premium. If it closes below it you are put the stock at a cost of 1.70. If it closes ATM you may or may not be put the stock. You could close your contract for a few cents though. Whenever I am put the stock, I then sell covered calls against it until you are called out. Then go back to selling puts.

I typically only sell puts out three months because it takes so long for the premium to decay if you go out longer in time.
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