Selling STLD puts for income.
Steel Dynamics (STLD) is an American manufacturing company that should do very well in an inflationary environment.
The company sells products to a wide variety of customers including construction, automotive and manufacturing businesses. Strong demand from all of these areas should boost profits in the year ahead.
By selling the February $60 puts near $2.30, we’re able to collect an annualized yield near 40%, while also giving us roughly $2.00 per share in cushion between the current market price for STLD and our strike price.
- Sell (to open) 1 STLD February 18th $60 puts
- Limit: $2.30 or more
- The new position will represent roughly 6.0% of our model.
~~~~~~~ - 14:54 Executed
- Sold 1 STLD Feb 18th $60 Put @ $2.45