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Shortput

OPENING (IRA): BA FEBRUARY 19TH 170 SHORT PUT... for a 1.94 credit. Notes: Although I've previously shied away from single name in the IRA, I'm starting to target some options highly liquid single name here, since I've already got positions on in all of the exchange-traded funds that are currently productive from a premium-selling standpoint. 30-day implied is at 50.9% and expiry specific at 51.4%. Going with a fairly low delta strike here outside 2 times the expected move that pays at least 1% of the strike price with the knowledge that earnings are in 35 days, so want plenty of room to be wrong. For smaller accounts, consider a defined risk spread (e.g., the February 19th 170/175 short put vertical paying .52 or the February 19th 170/180, paying 1.12, etc.).
NYSE:BA
by NaughtyPines
3
OPENING (IRA): UAL MARCH 19TH 33 SHORT PUT... for a .91 credit. Notes: Here, an addition to my Jan '22 47 covered strangle in UAL to reduce cost basis further, which currently consists of (a) a Jan '22 47 covered call; (b) a February 19th 35 short put; (c) a March 19th 33 short put; and (c) a June 18th 32 short put. Cost basis is currently at 42.75 versus where the underlying is currently trading at 40.27. 30-day's at 67.3% with expiry-specific at 66.7%, with earnings in the rear view, so it could be fine as a stand alone trade (2.84% ROC at max as a function of notional risk).
NASDAQ:UAL
by NaughtyPines