HAL9000

Selling Puts on AKS: Low Risk Very High Reward

HAL9000 업데이트됨   
NYSE:AKS   None
AKS Published good earnings 2 days ago
The stock made an intermediate high at $5.75 on this occasion
Today the company is announcing a stock issuance at $4.90
The stock price is down some 8% in adjustment to this news
Opportunity to SELL NOV 18 '16 $4.50 PUTS at c. $0.14/share
If exercised, the reward/risk will be a very compelling 2.8x
Adjusted for the risk premium, this would be more than 5x
If not exercised, pocket a 2.76% premium ($0.14/$5.07) in 3 weeks (+48% annualized)
액티브 트레이드:
As the market goes down, AKS holds up well
Good sign for the put sale at $4.50
Looks like our premium is safe
Happy to own the shares at $4.50 anyway
액티브 트레이드:
9 days before the expiry of the option, it looks like we are 20% out-of-the-money.
Premium continues looks safe, for those who sold the puts.
거래청산: 타겟 닿음:
The option is worthless as the stock is up 50%. Pocket the premium. Trade closed.

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