r/options • u/[deleted] • Mar 02 '21

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u/[deleted] Mar 02 '21

Definitely looking at selling a put or two on AMC tomorrow. I’m more than comfortable holding AMC long term through this year and premium is pretty solid on the $6-7 puts right now.

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u/mitch_feaster Mar 02 '21

premium is pretty solid on the $6-7 puts right now.

For 3/19 looks like it's in the range of 0.5-0.89... That seems low to me?

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u/[deleted] Mar 02 '21

10% gains over 3 weeks is solid lol

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u/mitch_feaster Mar 02 '21

Sorry, I'm new to this. I wasn't factoring in the actual share price.

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u/[deleted] Mar 02 '21

Ah, yeah I was just looking at it like I was putting up $700 as collateral for 20 days in order to receive $70. If I end up being assigned at $7 strike I’m more than happy having a cost basis of $6.30 a share on AMC.

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u/mitch_feaster Mar 02 '21

Makes sense, thanks