Selling CLF puts for income.
Cleveland-Cliffs Inc. (CLF) is a steel manufacturing company that also supplies iron ore to other steel companies in the American Great Lakes region.
Steel stocks are moving higher as the global economy recovers, demand grows, and inflation causes steel prices to rise.
By selling the February $23 puts near $1.20, we’re able to collect an annualized yield near 43%, while also giving us roughly $1.30 per share in cushion between the current market price for CLF and our strike price.
- Sell (to open) 3 CLF February 18th $23 puts
- Limit: $1.20 or more
- The new position will represent roughly 6.9% of our model.
- 10:45 Executed
- Sold 3 CLF Feb 18th $23 Puts @ $1.23