Semi Equipment Analysis Message Board

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Technology Stocks : Semi Equipment Analysis

SOXX 309.40

+1.0%

Dec 5 4:00 PM EST

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To: Return to Sender who wrote (88057)	2/23/2022 12:52:44 PM
From: robert b furman	1 Recommendation Read Replies (1) of 95530

Hi RtS, Funny you should say that. I was just doing the numbers on selling a January 40 put. Today it is bid ask . Today it is 3.40 to 3.55 and up a buck with a three year low of $42.86. At today's price it is a if you sold 10 puts, your account would get $3500.00. If assigned in January 20,2023 you'd have a net purchase price of $36.50. Today's dividend is .365 x's 4 = $1.46. $1.46/36.50 = 4.0% ! If the put expired to 00.00 you'd keep the $3500. cash in your account. $3.50/$36.50 = .098904% / .917 (annualized for the 11 months of time till January 2023) = 10.456% for collateralizing your account equity for 11 months time. So the worst that could happen is a buy at net price of $36.50 if assigned and 4% dividend out into the future. If not assigned the $3500 would give you a 10.456% return on the collateralization of the put for 11 months. I'm OK with either alternative. $44.80 is the weekly lower Keltner band and and $44.61 is the 100% retrace of INTC's last LT move up. Were in the right zone I think. I've got it on my daily watch list! Thanks for the idea. Bob

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