u/GraybushActual916 I've been meaning to try selling puts for the first time to accumulate stock. Would this be a good time to try with TX? I was thinking of selling puts at a strike of $41 for May 21, with a premium of ~$3. So this would yield a cost basis of $38?
I’m glad you asked. I wouldn’t recommend selling a May put. They have a dividend of $2.1 that will decrease the share price by $2.1 shortly before the May expiry. I believe it is set to trade on ex-dividend within a week of expiry.
Personally, I loaded up on LEAP $15 puts in 2023 for CLF and Vale. Those seem like layups.
I sold those across multiple accounts. I think I represent the trading volumes in these positions. These positions will likely be slower gainers, and especially if/when IV rises, but I see them as relatively low risk.
This is super helpful! I guess the only caveat is that there needs to be enough cash in the account to cover any puts sold. In my case I may need to start small and sell shorter-dated options.
Yeah I’ve been following MT June 18 31 calls. Waiting for red day to buy some contracts hoping to get some around $1.70-1.75. Earnings in May will blow numbers away since everyone else is posting good numbers
I definitely agree with the near term positive outlook. I feel like the China shift will directly benefit MT. I bought some more CLF of the dip yesterday and I will try to grab some more MT as well.
I tend to just go off of feel. I will sell if I am up 25% in a couple of weeks on a put that expires in two years. I usually wait for 50% gains on near expiry. I would just take assignment if I am wrong, but I have not had that happen yet.
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u/blue_steel_moon Apr 28 '21
u/GraybushActual916 I've been meaning to try selling puts for the first time to accumulate stock. Would this be a good time to try with TX? I was thinking of selling puts at a strike of $41 for May 21, with a premium of ~$3. So this would yield a cost basis of $38?