TWO WINNERS CHK & WLL – September Option Expiration
The strategy to sell 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 September positions that go off the board today.
6% return in month– Chesapeake Energy Sold September $4.50 Put at $0.25. Closing CHK price $7.35 so option expires worthless as per plan for max profit.
5% return in month– Whiting Petroleum Sold September $7 Put at $0.35. Closing WLL price $7.04 so option expires worthless as per plan for max profit.
OPTION WHEEL UPDATE
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
SDRL price is at $2.25. A covered call will be sold in the future to lower cost basis once again.