Selling SSRM puts for income.
SSR Mining Inc. (SSRM) is a precious metal miner which should benefit from a rise in gold and silver prices.
Precious metals have been stable lately and should benefit from higher inflation. Plus, SSRM profits will continue even if gold and silver prices remain stable.
The stock is trading at a deep value compared to other areas of the market. This should help to provide a floor under the stock price, helping to add safety to this income trade.
By selling the February $17 puts near $0.90, we’re able to collect an annualized yield near 33% while also giving us roughly $0.40 per share in cushion between the current market price for SSRM and our strike price.
- Sell (to open) 4 SSRM February 18th $17 puts
- Limit: $0.90 or more
- The new position will represent roughly 7.2% of our model.
- 11:59 Executed
- Sold 4 SSRM Feb 18th $17 puts @ $0.93