strategy: sell a put that may expire worthless
sold ATM PUT: FET May 19 2023 22.5 PUT
TA suggests that FET will rise in price. If not, I'll have to buy 100 shares of FET at 22.5 per share ($2,250).
I collected a premium of $54. If the put expires worthless, I keep the premium.
I've stayed away from options because even though 95% of options expire worthless if exercised the risk ($2,250) is much greater than the reward, i.e. a premium of $54.
But, I'm looking for alpha so that I can show a positive TWR each month for the US Financial Competition.
We'll see if this was a good idea in 9 days when the put expires.
Leave a Reply