Selling TRIP puts for income.
TripAdvisor (TRIP) has certainly been a victim of the coronavirus crisis. But as travelers start booking trips again, TRIP profits should quickly rebound.
The stock recently found support near $25. Most recently, shares barely budged while many other areas of the market traded sharply lower. This tells me there is plenty of capital moving into this stock — along with other travel and leisure investments.
By selling the February $26 puts near $1.05, we’re able to collect an annualized yield near 34%, while also giving us roughly $2.40 per share in cushion between the current market price for TRIP and our strike price.
- Sell (to open) 3 TRIP February 18th $26 puts
- Limit: $1.05 or more
- The new position will represent roughly 7.8% of our model.
- 15:20 Executed
- Sold 3 TRIP Feb 18th $26 Puts @ $1.16