{"id":5715,"date":"2019-09-16T11:01:33","date_gmt":"2019-09-16T15:01:33","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5715"},"modified":"2019-10-03T10:40:47","modified_gmt":"2019-10-03T14:40:47","slug":"sold-snap-puts","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5715","title":{"rendered":"Sold Snap Puts"},"content":{"rendered":"

\u00a0<\/p>\n

\"\"<\/a>I don\u2019t sell many Puts but I just sold 20 on Snap (SNAP).<\/p>\n

SNAP has been hanging around $16 for a while. Today with the market starting down the stock took a big dip, about 40\u00a2, or 2.5%. I did some research and saw that SNAP has an imbalance of Calls to Puts. The amount of Calls was much higher than Puts. The near term $16.50 options have high Open Interest and high Volume. This tells me that many traders feel SNAP will be going up, near term. I feel the stock will hang around the $16 to $16.25 area. The information I looked at tells me the stock will not be taking a big drop. You never know but I decided to sell 20 contracts of the SNAP $15.50 Puts that will expire this Friday. I received a premium of 30\u00a2 for $600 on the 20 contracts.<\/p>\n

Sell to Open 20 SNAP 9\/20\/19 $15.50 P @ 30\u00a2 (+$600)<\/strong><\/p>\n

Selling a Put, what does that mean?<\/p>\n

When selling a Put, in exchange for a premium, you give the Put buyer the right to sell you the stock at the Strike Price. With this SNAP Put I sold someone the right to sell me 2000 shares of SNAP for $15.50, and I have the obligation to buy. If the stock goes below $15.50 they will sell me the shares of SNAP. If the stock stays above $15.50 they will not sell me the stock because they can sell the stock on the open market for the higher price. I feel, and hope, the stock stays above my Strike Price of $15.50 and the option expires. And I keep the $600!<\/p>\n

I give this trade a Risk Factor 2<\/strong>. I do not think there\u2019s much risk involved in this trade. The worse thing that can happen is I buy the stock at $15.50. If that happens, I start selling Calls against the 2000 shares and bring in some premiums. The reason I didn\u2019t give this trade a Risk Factor 1 is there\u2019s always a chance the stock takes a big flop and I own it at $15.50. I don\u2019t think this will happen before Friday.<\/p>\n

\n

I have 2 other orders placed and I\u2019m waiting for them to get filled.<\/p>\n

On 7\/18\/19 I bought a 10 contract Call on Micron. I paid $7.50. I placed an order to sell this option for $10.50. This would be a $3000 gain. Let\u2019s see what happens.<\/p>\n

Also with Micron down about $1 today I decided to sell a $49 Put. I placed the order for a 70\u00a2 premium. I\u2019ll let you know if I get filled on either of these orders.<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 I don\u2019t sell many Puts but I just sold 20 on Snap (SNAP). SNAP has been hanging around $16 for a while. Today with the market starting down the stock took a big dip, about 40\u00a2, or 2.5%. I did some research and saw that SNAP has an imbalance of Calls to Puts. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-5715","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-1ub","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5715"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5715\/revisions"}],"predecessor-version":[{"id":5838,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5715\/revisions\/5838"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}