Asking for advice, if theres anything I missed out.
So Im currently looking at ATYR Option chains, 400%. Current prices of ATYR are $5.55/share.
Im looking to sell 31 $6P 19/9, right now premiums are about $290, this would mean if Im assigned my entry would be $3.1/share. However the upfront premium I collect would be 9K.
This means as long as prices stay above $3.10 by 19/9, even if I do get assigned, I would technically still be profitable? Off chances it tanks 80% from current prices loss would be 2/share.
What do you guys think about this play?
Posted by TrainingDue9437
2 Comments
Makes sense, but IV is insanely high here. Personally, I avoid trading stocks with that kind of volatility since the odds of it going against you are big, even if the premium looks great. I’d check that 400% IV against historical levels to see if it’s justified before jumping in. 😊
Asking about specific tickers is missing the entire point of selling options.
By the time you consider it and ask questions, get answers and decide to do something the next day, whatever ticker you were thinking would no longer be your best option.
These things change minute by minute.
Understand why selling options work, then apply that knowledge with an options screener and sell whatever is the best fit for your budget and risk profile.