This is my latest for selling ATM Puts. I sold a $120 put this morning that expired today and bought it back for nice profit. Then I just sold the $121 put that expires next Friday. Again this is a stock I don't mind owning. There is a lot of premium available and I plan to do the wheel strategy, keep selling puts until put the stock. Then sell ATM calls until until it is taken away. Then repeat.
Thanks Grant!
Was the volatility yesterday a factor in you selling(giving you a better price)?
Shares of Roku (NASDAQ:ROKU) opened Thursday's trading 17.6% lower following the streaming media expert's release of third-quarter results. Ten minutes before noon EST, the stock had recovered somewhat to a drop of 10.4%.
https://seekingalpha.com/article/4304664-roku-choppy-unshakeable-long-term
I did choose this stock based on volatility making the premium high. I also feel this is a good long term stock. Not paying dividends right now but I feel it will be around $250 a share in a few years and probably pay 3% or so in a few years.
Well, I was put the stock today thanks to the big drop this week. My price point is around $145 so it's a small loser right now. 40 delta calls pay $300 in premium right now in the weekly options so that's what I am selling against my position. I still feel this will much higher in a few years. Everyone I know has ROKU. We shall see.