Selling CHPT puts for income.
ChargePoint Holdings (CHPT) designs and markets charging stations for electric vehicles.
The company offers products and services both for individual retail consumers and also for large industrial customers.
As the “Inflation Reduction Act” takes effect, subsidies for electric vehicles and charging stations will drive demand for CHPT solutions.
While CHPT is not yet profitable, the stock should move higher in anticipation of growing business. Plus, CHPT may be an acquisition target for a larger player looking to get into the electric vehicle charging industry.
By selling the October $14 puts near $0.80, we’re able to collect an annualized yield near 47%, while also giving us roughly $2.20 per share in cushion between the current market price for CHPT and our strike price.
- Sell (to open) 4 CHPT October 21st $14 puts
- Limit: $0.80 or more
- The new position will represent roughly 6.4% of our model.
• 15:16 Executed
• Sold 4 CHPT Oct 21st $14 Puts @ $0.82