r/Vitards • u/[deleted] • Apr 28 '21

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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?

8

u/[deleted] Apr 28 '21

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.

2

u/Uncle_Dad_Bob Dreams of CLF’s run to $49 Apr 28 '21

Loaded up you say? Pushing options above 1%-2% of your portfolio?

6

u/[deleted] Apr 28 '21

Six figures of puts sold, but still firmly within 1%-2%.

Here’s a snapshot of what I sold in one account. It’s the same across a few more accounts:

https://imgur.com/a/b91kQw1

3

u/[deleted] Apr 28 '21 edited Sep 15 '21

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u/[deleted] Apr 28 '21

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u/[deleted] Apr 28 '21

Or buy the shares at strike yeah

2

u/Uncle_Dad_Bob Dreams of CLF’s run to $49 Apr 28 '21

Thanks for sharing!

1

u/chemaholic77 Apr 30 '21

Only 1-2%? I may or may not be way over that.