Looking to add to my $AVGO & $QCOM positions
Do not want to add at current levels, so I will sell puts to hopefully buy the shares lower & earn a premium
If shares donβt drop to my strike, I walk away with my Premium as gain
Selling Puts are a big strategy for me
SEE HOW π
Do not want to add at current levels, so I will sell puts to hopefully buy the shares lower & earn a premium
If shares donβt drop to my strike, I walk away with my Premium as gain
Selling Puts are a big strategy for me
SEE HOW π
Letβs break down $QCOM
Looking at the $125 strike price, which was a support level ALL year
At $125, $QCOM shares would trade at a fwd earnings multiple in the SINGLE digits at 9.5x
Looking at the $125 strike price, which was a support level ALL year
At $125, $QCOM shares would trade at a fwd earnings multiple in the SINGLE digits at 9.5x
The $125 July option = $2.40
You would collect $240 PER option contract you sell
1 option contract = 100 shares
IF shares, fall below $125, the option buyer would exercise the option
You would KEEP your $240 and use it towards buying 100 $QCOM shares at $125
You would collect $240 PER option contract you sell
1 option contract = 100 shares
IF shares, fall below $125, the option buyer would exercise the option
You would KEEP your $240 and use it towards buying 100 $QCOM shares at $125
You can utilize this strategy for stocks you are looking to add to your portfolio
Risks are evident in that a stock could tank hard, but thatβs why you want to be confident owning the stock at the strike
Also having cash on hand to trade as well, otherwise you could do a spread
Risks are evident in that a stock could tank hard, but thatβs why you want to be confident owning the stock at the strike
Also having cash on hand to trade as well, otherwise you could do a spread
Selling puts is equivalent to getting paid while you wait for the stock to drop
Want to learn more about Selling Puts?
Checkout this guide by my friend @BusinessFamous
gumroad.com
Want to learn more about Selling Puts?
Checkout this guide by my friend @BusinessFamous
gumroad.com
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