Sold D 70 strike, 4.2% from underlying for 11.55% AROI
42 DTE.
Dividend at the strike is 3.6%
I'm not in weekly demand here to initiate the trade, which would be proximal at 70.
But It has found some support at the -1 sigma range level and going sideways.
And since this is a Theta decay, there's no telling how long it can stay sideways and expire a put.
I've passed on many opportunities to grab 9 to 12% and thought price could move lower, but it just went sideways for 2 months, and left good premium on the table.
Not great, but not terrible either.
I'm thinking it gets stuck sideways at the 72.75 support level.
The hourly has pushed up and found top of the local range at 75.
So maybe it goes sideways for a couple weeks without going down to test 70, which I fully think it will.
I doubt it can stay much below 70 for a long duration over about 2 days because the dividend would be over 2x what the US10Y yield is at that point.
And I don't think the US10Y gets over 1.7 without the Fed coming in to smash it back down artificially.
42 DTE.
Dividend at the strike is 3.6%
I'm not in weekly demand here to initiate the trade, which would be proximal at 70.
But It has found some support at the -1 sigma range level and going sideways.
And since this is a Theta decay, there's no telling how long it can stay sideways and expire a put.
I've passed on many opportunities to grab 9 to 12% and thought price could move lower, but it just went sideways for 2 months, and left good premium on the table.
Not great, but not terrible either.
I'm thinking it gets stuck sideways at the 72.75 support level.
The hourly has pushed up and found top of the local range at 75.
So maybe it goes sideways for a couple weeks without going down to test 70, which I fully think it will.
I doubt it can stay much below 70 for a long duration over about 2 days because the dividend would be over 2x what the US10Y yield is at that point.
And I don't think the US10Y gets over 1.7 without the Fed coming in to smash it back down artificially.