Selling RUN puts for income.
Sunrun Inc. (RUN) is a solar energy company that designs, builds and maintains residential solar energy installations.
The company stands to benefit from the “Inflation Reduction Act” which will spend massive amounts of money to incentivize renewable energy projects in the U.S.
Shares of RUN have moved sharply higher as this bill has moved its way through Congress. I expect the stock to continue higher as more implementation details emerge.
We already locked in a profit from shares of RUN earlier this year. And now we’re taking an opportunity to set up a new income trade for the stock.
By selling the September $30 puts near $1.05, we’re able to collect an annualized yield near 37%, while also giving us roughly $6.20 per share in cushion between the current market price for RUN and our strike price.
- Sell (to open) 2 RUN September 16th $30 puts
- Limit: $1.05 or more
- The new position will represent roughly 6.7% of our model.
- 15:19 Executed
- Sold 2 RUN September 16th $30 puts @ $1.16