Sold More Workhorse Puts

Yesterday I sold 10 Workhorse (WKHS) $13 Puts. I received a 95¢ premium for $950. I sold this yesterday because the stock was way down on losing a multi-billion dollar government contract. I felt the stock wouldn’t go down much more. I sold the Puts for the premium only. I don’t want to buy the stock, but if it’s put to me at $13 I think it will be a good deal.

Today is a very bad day for the market, however, WKHS is hanging tough. I think it went down so much on not getting the government contract it’s hitting support. I decided to sell another 10 Puts. These are the same Puts as yesterday’s, only the premium is a lot lower. Time decay at work. I sold 10 more 2/26/21 $13 Puts for a premium of 22¢ for $220.

Sell to Open 10 WKHS 2/26/21$13.00 P @ 22¢ (+$220)

All 3 major indexes are down big today but I still have to make money. I’ll take the $220 on the $15 stock. This option expires tomorrow. The trade gets a Risk Factor 2. It’s still $2 Out-of-the-Money but this market is in bad shape. I still don’t think the stock will get down to $13. If it does, I own it!

Successful trading,

Steve

The options Coach