8 Comments
User's avatar
Leo's avatar

From September's low (09/02) it just bounces off the daily AVWAP. One of the easiest and most predictable trades to take. Hope it continues like this 😁

Edward Corona's avatar

Yessir, it is definitely one of my go to’s for this strategy so I hope it continues as well!

Dustin's avatar

Would letting option expire to buy at a steep discount (at current price) be a viable strategy?

Edward Corona's avatar

If I really wanted to own it, yes, but it's a very volatile stock, and could swing below my break-even, so with 70% of the max reward captured and 15 days left to expiry, taking the gain was the right move for me. However, it is a good payer on covered calls too, so getting assigned wouldn't be the worst thing either, especially if it expired in the $50-$51 range. Personally, I'll wait for a pullback and sell another CSP.

Kathy's avatar

Love your teaching.

Michael Mobley's avatar

This was an excellent trade recommendation

Edward Corona's avatar

$HIMS has always been good for this strategy