OPENING ("THE KID"): HYG DEC 20TH 87 SHORT PUT
... for a .95 ($95) credit.
Notes: She's gone quite aggressive here, selling the first out-of-the-money strike with a break even at 86.05. She'll look to roll for duration on extrinsic approaching zero to the first out-of-the-money short put for a credit or, at the very least, toward current price for a credit, looking to emulate HYG's annualized dividend (currently 4.56) without actually being in the stock. She said she's fine with taking assignment at 86.05, but would prefer reducing cost basis "as much as possible" before taking on shares.
She liked my "not a penny more" idea (See Post Below), called it "nice" but "not aggressive enough." Kids nowadays ... . We'll see how her "aggressive" goes.
Notes: She's gone quite aggressive here, selling the first out-of-the-money strike with a break even at 86.05. She'll look to roll for duration on extrinsic approaching zero to the first out-of-the-money short put for a credit or, at the very least, toward current price for a credit, looking to emulate HYG's annualized dividend (currently 4.56) without actually being in the stock. She said she's fine with taking assignment at 86.05, but would prefer reducing cost basis "as much as possible" before taking on shares.
She liked my "not a penny more" idea (See Post Below), called it "nice" but "not aggressive enough." Kids nowadays ... . We'll see how her "aggressive" goes.
Trade closed manually:
With 10 DTE, covering for .37, a .58 ($58) profit.
