claypuzzle

D short put 70, 42 DTE

NYSE:D   Dominion Energy, Inc
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.

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