Sold 1 Put on F Stock – 13.9% potential income loss in 221 days
On December 29, 2023, I sold another put option on F stock.
At the start of November, I got assigned 100 shares with F stock at 14. A position I originally started back in July 2023.
In the previous weeks I have been trying to recover my loss by selling short strangles.
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
here is the trade setup:
SLD 1 F Feb16'24 11 PUT 0.16 USD
What happens next?
On the expiry date, February 16, 2024, F is trading above $11 - options expire worthlessly and I keep premium.
In case F trades under $11, I risk getting assigned 100 shares at $1,100. If so I will hold already 200 shares with F, but my average buy price will be $12.5.
Anyhow, if any of the sides will be challenged - I will try to roll them forward for credit.
As I already have collected a premium of $1.47 per share, my break-even price for this trade is $14-$1.47= $12.53.
In total: 16 trades since July 10, 2023
Options premium: $147