Sold to open, 7 uncovered puts, strike price 30 at .55 bringing in $385.00 (less Commission) Stock symbol "CSH". While the market is up today and I don't like selling puts in an up market, I can't help but want this stock even if we fall into a deep recession. Actually, I want this stock in case we fall into a deep recession, why? Well, they own so many pawn shops that they can't help but make money during a time when credit is tight. It's even hard for a consumer to get a credit card right now, so until this recession is over, I'm either a constant seller of the puts on this stock or I'll go long the stock.
Since the market has gone up the last few days, rather than be a buyer of this stock, I decided to sell out of the money puts, sticking with my strategy that if I get put the stock, it will be at a price which is 20% lower than today and if not, we'll gosh darn it, I'll just have to keep the premium and try again next month. Only time will tell whether this trade was a trick or treat. Happy Halloween and I hope all of you are making money in this very weird market.
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