Selling RUN puts for income.
Sunrun Inc. (RUN) is a solar energy company operating primarily in the U.S. residential market.
The company sells complete systems that typically come with a 20-25 year service & utilization agreement with individual customers.
With oil and natural gas prices spiking higher, renewable energy is becoming a more important industry around the world.
RUN does not currently generate a profit, but the company is expected to transition to profits sometime next year.
After a significant pullback from 2021 highs, the stock appears to have found support. Institutional investors are likely to start building positions in renewable / clean energy companies. And the stock could also be a takeover target.
By selling the May $25 puts near $1.45, we’re able to collect an annualized yield near 37%, while also giving us roughly $5.40 per share in cushion between the current market price for RUN and our strike price.
- Sell (to open) 2 RUN May 20th $25 puts
- Limit: $1.45 or more
- The new position will represent roughly 5.1% of our model.
- 10:56 Executed
- Sold 2 RUN May 20th $25 Puts @ $1.52