GENB Commentator$Navitas Semiconductor(NVTS.US) It's at $10, sell it at half price
$NVTS 260702 23 Put(NVTS260702P23000.US) Try selling a put to take delivery; normally buying would cost 23.59 (I'm also willing to take delivery).
If selling a put, first collect $213
- If it falls below $23 (-2.5%) on July 2nd after 16 days, take delivery of 100 shares at $23, with an equivalent cost of 23-2.13=20.87 (actually, as long as the stock price is above 20.87, it's not a loss).
- If it's above $23, net profit of $213, which is also good (the problem is missing the upside, I actually see it going to $30).
Note: The hidden cost is the margin requirement. With the expiration date so close, the put's value decays daily; as the seller, I earn time value every day.
Note 2: AI suggests if I strongly see it reaching $30, I could use the money from selling the put to buy a $25 call for the same period (forming a risk reversal strategy).
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
