Selling MARA puts for income.
Marathon Digital (MARA) is a cryptocurrency miner that benefits from the recent stabilization in Bitcoin and other tokens.
Shares of MARA have bounced from a key support level near $20 multiple times. And now the stock is close to breaking its downtrend which could lead to a sharp rally.
We closed out our April puts earlier today to lock in a profit. And now we’ll sell a new batch of puts to collect even more income from this name.
By selling the May $20 puts near $1.70, we’re able to collect an annualized yield near 52%, while also giving us roughly $6.80 per share in cushion between the current market price for MARA and our strike price.
- Sell (to open) 3 MARA May 20th $20 puts
- Limit: $1.70 or more
- The new position will represent roughly 6.2% of our model.
- 13:34 Executed
- Sold 3 MARA May 20th $20 Puts @ $1.72