Selling BBBY puts for income.
Bed Bath & Beyond (BBBY) is a profitable retail company making a comeback after mismanagement by the company’s previous executive team.
The company should benefit from continued consumer spending on home goods. And Wall Street expects strong profit growth over the next few quarters. Shares have begun moving higher now that investors are aware of the company’s turnaround prospects.
By selling the March $15 puts near $1.30, we’re able to collect an annualized yield near 70%, while also giving us roughly $2.30 per share in cushion between the current market price for BBBY and our strike price.
- Sell (to open) 4 BBBY March 18th $15 puts
- Limit: $1.30 or more
- The new position will represent roughly 6.2% of our model.
~~~~~~~ - 10:50 Executed
- Sold 4 BBBY March 18th $15 Puts @ $1.35