1 Winner out of 1 Trade closing out today
February Option Expiration Update
NUGT WINNER… GRPO profitable postiion
WHEEL IT… Southwestern Energy and Seadrill
The strategy to sell cash secured puts is a method to buy stock at a discount or get paid not to… taking advantage of the market fears and volatility with high probability plays.
Below updates the February positions that go off the board at end of today Friday.
5% return in three weeks– NUGT Gold Miners ETF Sold February $8.50 Put at $0.45. Stock at $12.75 today so option premium will be banked for full profit.
GPRO sold February $9.50 Put at $0.45 for a stock cost basis at $9.05. Shares of GPRO are trading at $9.25 heading into option expiration. The option can be bought back at a profit now to close out position OR shares may be assigned if GPRO is below $9.50 at day’s end.
If long shares on Monday a covered call can be sold to lower basis again…
OPTION WHEEL UPDATE
Originally sold Southwestern Energy November $11 Put at $0.55. with stock assigned at $10.45. Later, sold the December $12 Covered Call for $0.40 to lower cost basis to $10.05. Then sold the January $12 Call for $0.30 to lower cost basis to $9.75.
With shares at $9.50, the $12 Call will expire out of the money. A covered call will be sold to again lower cost basis.
Originally sold SEADRILL May $4 puts for $0.25 http://www.bullseyeoption.com/trade-alert/new-trade-alert-may-2nd-seadrill/ to put break even basis at $3.75.
SDRL stock was assigned with July $4.00 covered call sold for $0.25 June 7th on long shares to lower stock cost again to $3.50.
A covered call will be sold to again lower cost basis.