C (Citigroup) — Cash-Secured Put
I sold 1 October 2 $130 put on C (Citigroup) for a credit of $1.35 per share, or $135 before commissions and fees.
Why I Made the Trade
I'm comfortable owning Citigroup at $130 if the shares are assigned to me.
The $1.35 premium gives me an effective purchase price of approximately $128.65 per share before fees if assignment occurs. If the option expires out of the money, I keep the premium and can look for another opportunity.
As with my covered calls, I'm not trying to predict exactly where the stock will trade. I'm comfortable with either outcome: collecting the premium without assignment or owning the shares at an effective price I'm willing to accept.
Execution Parameters: I was comfortable making this trade around the price shown above. If the stock or option has moved materially by the time you receive this alert, I would not chase it. The economics may be different from the trade I made.
Important Disclaimer: This is a record of my actual trade and actual fill, not a trade instruction or signal.