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Technology Stocks : CYPRESS Semiconductor (CY)
CY 23.820.0%Apr 16 4:00 PM EDT
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To: OldAIMGuy who wrote (2669)10/6/2018 11:55:47 AM
From: robert b furman   of 2694
 
HI OldAIMGuy,

Yesterday I sold 25 $13.00 puts for an average of $1.83. They expire on January 17th 2020.

If assigned to me they will have a net purchase price of $11.17. Assuming the dividend stays the same it would yield 3.94%.

If they expire to 00.00 - I'll just keep the $4587.04.

Since it was held for over 12 months I'll be able to pay capital gains on the transaction.

The premium of $4587.04/25 = 1.83/11.17 = 16.383% held over 15 months = 13.11% on annualized basis.

In a fit of unusual luck I sold my CY on the day they announced earnings and had a pop up into the 18's.

So I'm beginning to accumulate the shares back at a little lower price than I had them before at (11.37).

I think CY has a good product portfolio and may well benefit from this China secret chip event.

The rearrangement of the supply channels should benefit CY (a american chip maker) in the future.

The automotive business is growing and the I of T is particularly good as well.

If those puts expire to 00.00 - you'd get close to your 12 ish price target right away and get to keep some cash in your account in between.

I like your trade and thought I'd volunteer my trade as a possible piggy back on your buy.

Best of Trades!

Bob
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