I wrote a long dated put.
music selection: “No Woman, No Cry” — Fugees
Biogen (BIIB) has mostly traded sideways for years. I like its current prospects thanks to an Alzheimer’s drug under development. The company also shares a 50% in the most likely leading competitor drug for Alzheimer’s plaque removal.
With volatility high, it is possible to write a deep out of the money put that earns an acceptable rate of return. In this case, I wrote a put with downside protection of 26%. I sold BIIB220121P00280000 for 52.10 a share. The trade will be in force for 633 days and yields an expected 10.73% annualized.
I think I’m getting a good return and some upfront cash on a position that is highly unlikely to be assigned.
Devour your prey raptors!
Write put Biogen (BIIB)
Reminds me of a TV commercial for the Nerf football in the 1990’s.
“Go long. Reeeealll long!”
Are you sure that wasn’t the 80s? Could we be that old already?
I like your style, but I believe the Biogen JAN 2022 280 put that you wrote is “out of the money,” not “in the money.”
I enjoy your blog. Nice call on NLY.
Good luck on your trading!
Stay safe my friend.
Thanks. Definately Out of the money. I correct that.