Selling Puts on AKS: Low Risk Very High Reward

AKS Published good earnings 2 days ago
The stock made an intermediate high at $5.75 on this occasion
Today the company is announcing a stock issuance at $4.90
The stock price is down some 8% in adjustment to this news
Opportunity to SELL NOV 18 '16 $4.50 PUTS at c. $0.14/share
If exercised, the reward/risk will be a very compelling 2.8x
Adjusted for the risk premium, this would be more than 5x
If not exercised, pocket a 2.76% premium ($0.14/$5.07) in 3 weeks (+48% annualized)

Trade active:

As the market goes down, AKS holds up well
Good sign for the put sale at $4.50
Looks like our premium is safe
Happy to own the shares at $4.50 anyway

Trade active:

9 days before the expiry of the option, it looks like we are 20% out-of-the-money.
Premium continues looks safe, for those who sold the puts.

Trade closed: target reached:

The option is worthless as the stock is up 50%. Pocket the premium. Trade closed.