I like the electric car industry, and I like Workhorse, but it’s down today and I think it will be lower for a few more days. I was just going to buy the stock at $34 and sell a Call but I decided to try to get the stock cheaper. With the stock at $34.10 I sold 10 WKHS Puts with the Strike Price of $31. I received a premium of 80¢ for $800.
Sell to Open 10 WKHS 2/5/21 $31.00 P @ 80¢ (+$800)
If this stock gets down to $31 1000 shares will be put to me. If the stock stays above $31 until the close on Friday I will not have to buy the stock and I keep the $800.
Either way, I don’t care. If the stock is put to me I’ll sell Calls next week. I don’t believe the stock will stay at $31 too long.
Successful trading,
Steve
The Options Coach