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Sunday, May 5, 2024

Top Trades for Thu, 08 Jul 2021 14:50 – Put Selling

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Top Trades for Thu, 08 Jul 2021 14:50 – Put Selling
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Selling some puts in the LTP on stocks we'd like to buy on a dip:

Sell 20 ING Jan $12 puts for $1.10 ($2,200) 

Sell 20 BCS 2023 $10 puts for $2.10 ($4,200) 

Sell 10 ENVA Dec $30 puts for $3 ($3,000) 

Sell 10 KBH 2023 $35 puts for $5 ($5,000) 

Just a way to pick up a quick $14,400 for promising to buy value stocks if they become even more of a value.  In KBH, for example, we're promising to step in at net $30 – about 25% below the current price and $30,000 would be just 15% of our $200,000 allocation blocks in the LTP, so lots of room to double down, roll, etc.  All these stocks have PE's around 10 and no obvious reason they won't do well in the year ahead.

PHM, TROX, TD and UBS also made my list today but we already have those.