Sold 1 Put Option on F Stock – 1.8% potential income loss in 529 days
On February 16, 2024, I sold 1 additional put option on Ford stock (NYSE: F) with strike price at $10.82 and expiry set on May 17, 2024. For this trade setup, I was rewarded with $0.21 (after commissions).
At the start of November,. 2024 I got assigned 100 shares with F stock at 14. A position I originally started back in July 2023.
In the previous months and 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 MAY17'24 10.82 PUT 0.22
What happens next?
On the expiry date, May 17, 2024, F is trading above $10.82 per share - options expire worthlessly and I keep premium - if F trades under $10.82 on the expiry date, I risk getting assigned 100 shares and will have to buy them paying $1.082
But as I already have collected a premium of $1.74 per share, my break-even price for this trade is (14+10.82)/2-1.74= $10.67
In case of an assignment, I will turn this trade into a wheel strategy and will start selling covered calls.
In total: 19 trades since July 10, 2023
Options premium: $174