Selling RIOT puts for income.
Riot Blockchain is focused on Bitcoin mining, data center hosting and other processes tied to blockchain technology.
The stock is highly correlated with Bitcoin prices.
Bitcoin appears to have found support and may soon start advancing again.
Meanwhile, high volatility in the space leads to bigger income payments from selling put contracts.
This allows us to set up an attractive position that includes a wider safety buffer while still giving us a lucrative amount of income for the capital we’re setting aside.
By selling the November $5 puts near $0.33, we’re able to collect an annualized yield near 56%, while also giving us roughly $2.20 per share in cushion between the current market price for RIOT and our strike price.
- Sell (to open) 10 RIOT November 18th $5 puts
- Limit: $0.33 or more
- The new position will represent roughly 5.7% of our model.
- Executed 14:24
- SOLD 10 RIOT Nov 18 $5 Puts @ $0.34