I have written about selling puts on names that you might want to own for the long term as an investment. If you have extra cash in your account and want to own 100 more shares, writing (selling) puts is a great way to get in “on sale”.
With the market incredibly volatile, you can sell puts even farther out of the money than normal, meaning some of your favorite names are on “super sale”.
Strong Recommendation – you must be willing to take ownership of the shares at the strike you select and you must have the cash equivalent in your account ($100 * strike price).
To demonstrate the types of ‘sales’ available, below are some stocks that have the highest option volume. I’ve removed a couple of the top stocks that are low priced (Ford) and have Very wide bid/ask spreads. Interested in certain names? Join as a free bronze member and request a personalized list!
Option | Put Price | Annualized Yield | Underlying Price |
|---|---|---|---|
| AAPL Mar 20 2020 $225.00 Put | 0.7 | 16% | $277.97 |
| BAC Mar 20 2020 $16.00 Put | 0.145 | 47% | $24.16 |
| AAL Mar 20 2020 $5.00 Put | 0.165 | 172% | $14.31 |
| DIS Mar 20 2020 $65.00 Put | 0.5 | 40% | $102.52 |
| TSLA Mar 20 2020 $400.00 Put | 5 | 65% | $546.62 |
| AMD Mar 20 2020 $30.00 Put | 0.115 | 20% | $43.90 |
| FB Mar 20 2020 $130.00 Put | 0.44 | 18% | $170.28 |
| CVS Mar 20 2020 $45.00 Put | 0.31 | 36% | $59.64 |
| UBER Mar 20 2020 $14.00 Put | 0.19 | 71% | $22.60 |
| MSFT Mar 20 2020 $125.00 Put | 0.8 | 33% | $158.83 |
- The mid-point is assumed in the above calculations – actual fills may vary.
- Annualized yield assumes you generate the same premium every week. Markets will not stay this volatile and options closer to the money will need to be sold in the future