Selling LCID puts for income.
Lucid Group (LCID) is a technology company developing systems and solutions for electric vehicles.
The company’s products include powertrains, batter systems and other equipment for EVs which are in high demand. And while LCID has yet to turn a profit, the company is expected to generate $2 billion in revenue this year with sales more than doubling next year.
Shares found support near $35 last week and the stock has been moving higher even while other technology stocks have weakened. This relative strength should keep a floor under the stock price and gives me more confidence that the stock is headed higher.
By selling the February $35 puts near $2.35, we’re able to collect an annualized yield near 66%, while also giving us roughly $10.00 per share in cushion between the current market price for LCID and our strike price.
- Sell (to open) 2 LCID February 18th $35 puts
- Limit: $2.35 or more
- The new position will represent roughly 7.0% of our model.
- 15:39 Executed
- Sold 2 LCID Feb 18th $35 Puts @ $2.50