Selling Z puts for income.
The housing market continues to be strong despite higher interest rates. Years of underinvestment has led to a supply / demand imbalance that will support home prices. Zillow benefits from this demand not only through its web portal, but also with its business of buying and selling homes. (Zillow has the best metrics giving the company an advantage for pricing these transactions).
Shares appear to have found support near $90 and recently pushed above the 50-day average. High premium prices for Zillow options gives us a chance to collect more income from puts that have a wider margin of safety.
- Sell (to open) 1 Z November 19th $90 put
- Limit: $3.10 or more
- The new position will represent roughly 8.9% of our model.
- 15:28 Executed
- Sold 1 Z Nov 19th $90 Put @ $3.25