Good morning Stackers I have a new idea:
A few weeks back a guy was telling me how he sells cash covered puts to generate income. In the event he is assigned the shares (due to the Put being in the money) he takes the assignment makes the purchase of 100 shares.
So I been thinking let’s try this out with Fold stock?
Why you might ask?
I am a long term investor in so I see it as a win win. If the price goes down and I buy the shares at a higher price so be it I don’t mind adding shares to my position. But if the stock goes up or stays sideways then keep the premium for selling the option.
So today I entered my first position:
This Put option expires on 9/19.If I make profit I will spilt the gain with the stackers 50%
25% into the rewards pool and 25% to the comment that gets the most sats on this post
If I get assigned the shares then 50% of the shares will be owned by the stackers! Once these shares are liquidated or start earning a dividend then I will keep the same payout structure mentioned above!
If Fold goes bust well it was fun doing this and learning about options, puts, and how to use them to build a position in a stock you plan on holding for a few decades.
@remindme in 30 days