Sold Workhorse Puts

Yesterday (Tues, 2/23) Workhorse (WKHS) opened at $28.29. This is after moving down the last week and a half. The company was up for a multi-billion dollar government contract to make electric delivery trucks for the U.S. Postal Service but lost it to Oshkosh. The stock closed Tuesday at $16.47 and today, as I write, it’s down another $1.70.

Workhorse is a good company and I think it will recover. It’s not down for any fundamental reason, it’s down on news. I believe the stock will stop moving down soon and get back to the 20’s. With this confidence in the stock to not move down much further I just sold 10 2/26/21 $13 Puts. I’m trying to make money without buying more stock, but if the stock continues down I’ll take it at $13. I received a nice premium of 95¢ for $950.

Sell to Open 10 WKHS 2/26/21 $13.00 P @ 95¢ (+$950)

I do like the stock but it’s way down and it could continue a little further so I give this trade a Risk Factor 3.

Successful trading,

Steve

The Options Coach