Selling VALE puts for income.
VALE S.A. (CCJ) is a Brazilian iron ore producer benefiting from the broad economic reopening and also from inflation.
Higher commodity prices drive up the price for iron ore – helping to boost VALE’s sales and profits. This trend should continue throughout this year as inflation will not disappear any time soon.
By selling the April $18 puts near $0.90, we’re able to collect an annualized yield near 42%, while also giving us roughly $1.10 per share in cushion between the current market price for VALE and our strike price.
- Sell (to open) 4 VALE April 14th $18 puts
- Limit: $0.90 or more
- The new position will represent roughly 7.5% of our model.
~~~~~~ - 11:01 Executed
- Sold 4 VALE Apr 14 $18 Puts @ $0.94