I sold puts in PLTR. I did not buy puts.
Posted on: July 25, 2021 at 20:38:32 CT
scif MU
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I sold a contract at a 22 and at a 21 strike a couple of days apart. I collected a nice premium. I would like to own more of the stock, and I think it is near a bottom. If the stock is put to me, I'll be content with that. If not, as I recall, I will make 2% for holding it a bit over 1 month. If it is put to me, I will sell calls out of the money. It is called the wheel strategy.
I was surprised and disappointed that the market had only a one day correction, since I was poised to take advantage of a larger decline. That said, the quick reversal didn't hurt me. I missed the decline, and I can jump right back in, if I want. I've already bought some.
For your information, when you sell puts, if the stock turns higher, your position becomes more valuable, not less.