Sold OHI short put 42 DTE, Nov 19, 28 strike
5.72% from underlying price, 15.52% AROI
Assignment yield at strike is 9.57%, so I'd be happy with that.
Price is reacting to a zone where buyers have rallied from before. So I'm just at the Nov 2020 lows on strike.
I think about if I would've just bought OHI last Halloween and held it for 10% cash payout. I'd be right back to par today on capital value, but 10% more cash.
UGH, I regret not being more aggressive last year.
If OHI doesn't stick the landing below 28, then I'm happy with 15% AROI also and an extra 5%
Already have a bag of OHI in the Rollover IRA, but this is a taxable trade.
I like the high dividend yield, but with the whole Evergrande bullshit and Debt ceiling FUD, I am reluctant to take outright long positions, as is probably every fund manager in the world.
Overall, I think it's an asymmetric trade to the upside where I'm being paid 5% extra AROI to bid.
5.72% from underlying price, 15.52% AROI
Assignment yield at strike is 9.57%, so I'd be happy with that.
Price is reacting to a zone where buyers have rallied from before. So I'm just at the Nov 2020 lows on strike.
I think about if I would've just bought OHI last Halloween and held it for 10% cash payout. I'd be right back to par today on capital value, but 10% more cash.
UGH, I regret not being more aggressive last year.
If OHI doesn't stick the landing below 28, then I'm happy with 15% AROI also and an extra 5%
Already have a bag of OHI in the Rollover IRA, but this is a taxable trade.
I like the high dividend yield, but with the whole Evergrande bullshit and Debt ceiling FUD, I am reluctant to take outright long positions, as is probably every fund manager in the world.
Overall, I think it's an asymmetric trade to the upside where I'm being paid 5% extra AROI to bid.