My $14 short puts in AVO - Avigilion Inc (security cameras n' stuff) are looking like they will expire worthless tomorrow, as the stock is trading today at $17.80.
So I added a new position of short puts on them with a January expiry. I hope this position will again expire worthless, although the number of puts is small enough that I would begrudgingly take assignment.
Additionally I added 1 measly short put on IBRK - Interactive Brokers. It's my brokerage. Why not own some? Plus, with their "take no prisoners" approach to dealing with customer margin-calls, they will no doubt generate MORE income during market corrections and market crashes. So its earnings should be pretty crash-resistant. This is why I sold an ATM (at-the-money) call in the hopes I would get assigned.
Using an ATM short put with Interactive Brokers is CHEAPER than just buying the stock outright. Here's the breakdown:
Sell the short put and collect the premium. Take the assignment (a $0 cost at IBKR) and hold the stock. I plan on holding this one forever. Hopefully one day I'll have enough shares of IBKR so the dividends will pay for all the trading fees I spend each month. (Looks like I'll need about 2000 shares) But right now, that would be "considerably" overweight to have a 54k position. (Current share price $27)
Here's the brick:
Stay HUNGRY my friends.
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