weekly options

What’s your outlook?

If you are positive you can look at buying long term calls, also known as LEAPS. These are options that expire at least a year later. The other option, no pun intended is to be cautious and sell a put that is 10-15% below the current price.

Our idea today is to sell a Jan 17,20 PUT, the premium is roughly $13.50.  That gives you a basis of $106.50 if the stock is put to you.  based on having to have $12,000 available in case the stock is put to you the annual return of $13.50 is 11.25% yield. All this is assuming that the stock is never PUT to you. 

As always, consult your advisor before investing of any kind. Options are not suitable for all investors and people can and do lose money. optionsdojo gives no warranties or guarantees regarding our opinions. Invest at your own risk.

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