I'm eyeing the BP 8/19 put options. As in, I want to sell one. $25 price point, I'd get $515 cash in hand for my premium. So far, I’ve only sold covered calls, so a cash secured put would be new for me.
My current cost basis is $24, I wouldn't mind $20 shares at all. The 52 week low is around there. And it’s a decent stock all around. Only issue is, I'm not sure I want to move $2500 out of my savings to use for cash secured put strategy (I don't do margin, too risky). It’s purposely hoop jumping to ensure I don’t spend money needlessly. Plus, 2 days to settle – I hope Webull let’s me use it for the cash part of cash secured put if I move it today!
Either way I think I'd win, get 515 free for holding 2500 in cash for a little over a week, or buy BP for $20 per share (I don't think it'll crash below $20).
It feels like there’s a catch. Why is such an attractive offer still available?! Multiple bidders at $515. On Webull, it’s the 19 Aug 22 58/100 BP1 line. They sometimes have multiple sections for the same date, I noticed. The 58/100 line is significantly more profitable than the regular line. (Does anyone know what 58/100 BP1 even mean? I think it’s because it was the old long call/put option, then as time got near they added more dates.)
Anyways, what do you guys think? I’m conflicted about jumping on this at market open.
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