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Strategies & Market Trends : Option Strategies

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Recommended by:
robert b furman
From: FIFO_kid23/22/2023 1:11:02 AM
1 Recommendation   of 2591
 
On Monday I was busy selling as many CS 50 cent puts as I could for .03 or greater up to 3 weeks out and .04 and greater for 4 and 5 weeks out. I think that is a decent potential return for this idle cash for what I believe is a very low adverse probability event.

I also believe the holders of the AT1 bonds who were totally wiped out and currently threatening legal action will have no recourse in recovery if you read the prospectus. When the bond was underwritten in 2018 they were receiving around 800 basis points over the going rate of a Swiss government bond at the time with the same duration

My general approach here in this bear market I just try to take advantage of the increases in volatility when premiums are high expecting fast normalization and likely sell the put if something better comes along and funds are needed.
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