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@mster：$Cloudflare, Inc.(NET)$ Sold a put on $Cloudflare, Inc.(NET)$ Aabout a month back at strike $40, when the stock was trading around $45. It has range to a high of $55 and the recent low of $37+. The stock price took a dive last Thursday due to insider selling - the CEO sold couple millions worth of shares. Stock dip about 10% over just 1 trading day. As the market closes on Friday, the stock price has rebounded a little to $39.90. I could have close the Put position and pocket around $50 when the put I sold collected $180, but decided to keep the full premium and let the stock get assigned, with just 10 cents away from my strike price, its a keeper. Basic on technical chart: The stock is on a downtrend, though at $37, it shows a good support and bounces off a couple of times since the June’s low. Thinking since we just visited the low of $37, likely the stock price may rebound and trend upwards or at least range around the $38-$50 until its up coming earning on the 2nd week of Feb. By then we shall know if the CEO sold his shares cos he needed $$ or he knew something bad is coming… The stock traded up about 7% at one point on the first day after the stock was assigned, but closes just over 1%. Planning to do a Wheel Strategy with this. Now that have successfully sold a put, its time to sell a Covered Call on this lot of Cloudfair, looking at least a $45 strike and up to $50 depending on how the stock moves over the next couple of days, but, definitely to get one sold within this week. Will update again and see how this whole cycle goes. Trade safe.
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