Selling MARA puts for income.
Marathon Digital (MARA) is a crypto mining company that uses a fleet of computer servers to perform blockchain transactions and mine new Bitcoin tokens.
Cryptocurrencies have pulled back but are starting to find support. Meanwhile, MARA has bounced at the $20 per share level twice and investors are starting to have more confidence in this company.
Thanks to higher volatility for Bitcoin and this stock in particular, we’re able to collect a larger than average payment from these put contracts, while still taking advantage of a meaningful margin of safety.
By selling the April $15 puts near $0.85, we’re able to collect an annualized yield near 54%, while also giving us roughly $7.50 per share in cushion between the current market price for MARA and our strike price.
- Sell (to open) 4 MARA April 14th $15 puts
- Limit: $0.85 or more
- The new position will represent roughly 6.3% of our model.
- 10:49 Executed
- Sold 4 MARA April 14th $15 Puts @ $0.93