To The Moon

Earnings announcement* for SE: Aug 16, 2022

The report will be for the fiscal Quarter ending Jun 2022. According to Zacks Investment Research, based on 3 analysts' forecasts, the consensus EPS forecast for the quarter is $-1.18. The reported EPS for the same quarter last year was $-0.83.

the premium will be slightly higher I do not think the earnings/ (losses will be more )

@TigerStars@TigerEventsdo feature so people know can sell put on sea limited which is safer than just buy the stock . Especially for traders who dun mind just earning 1% 

supporters do like comment and repost the article ifu all feel It's useful

I realised the the vouchers are lesser now u cannot stack the % off voucher coins with the daily credit card 

It used to be if I will be buy $80 

I can stack $10 off Citibank 

$8 coins off and also shop voucher $5

Then credit card rebate 5% ..... I am only paying $55 for $80 goods with free shipping 

now when u use coins voucher that's it u cannot stack with credit card rebate . So their cost should be lesser as a seller there are more fees too . 

However as to be safe I usually sell put options at 1% premium with 20 to 30 % of strike price as a buffer against the current price . Worse case I will pick it up at $60 

0.60 profit Sea limited sell monthly put at $60 earning 1% 

Selling (also called writing) a put option allows an investor to potentially own the underlying security at both a future date and a more favorable price. In other words, the sale of put options allows market players to gain bullish exposure, with the added benefit of potentially owning the underlying security at both a future date and a price below the current market price.

KEY TAKEAWAYS

Selling (also called writing) a put option allows an investor to potentially own the underlying security at both a future date and a more favorable price.

Selling puts generates immediate portfolio income to the seller, who keeps the premium if the sold put is not exercised by the counterparty and it expires out of the money.

An investor who sells put options in securities that they want to own anyway will increase their chances of being profitable.

Note that the writer of a put option will lose money on the trade if the price of the underlying drops prior to expiration and if the option finished in the money.

Best Practices for Selling Put Options

Investors should only sell put options if they’re comfortable owning the underlying security at the predetermined price, because you’re assuming an obligation to buy if the counterparty chooses to exercise the option.

In addition, you should only enter trades where the net price paid for the underlying security is attractive. This is the most important consideration in selling put options profitably in any market environment.

Other benefits of put selling can be exploited once this important pricing rule is satisfied. The ability to generate portfolio income sits at the top of this list because the seller keeps the entire premium if the sold put expires without exercise by the counterparty. Another key benefit is the opportunity to own the underlying security at a price below the current market price.

Put Selling in Practice

Let’s look at an example of prudent put selling. Suppose that Company A is dazzling investors with increasing profits as a result of a new, revolutionary product. Company A’s stock is currently trading at $270, and the price-to-earnings ratio is at an extremely reasonable valuation for this company’s fast growth track. If you’re bullish about their prospects, you can buy 100 shares for $27,000, plus commissions and fees.

As an alternative, you could sell one January $250 put option expiring two years from now for just $30. That means the option will expire on the third Friday of January two years from now, and it has an exercise price of $250. One option contract covers 100 shares, allowing you to collect $3,000 in options premium up front (less commission).

By selling this option, you’re agreeing to buy 100 shares of Company A for $250, no later than January, two years from now. Clearly, since Company A shares are trading for $270 today, the put buyer isn’t going to sell you the shares for $250, as that is $20 below the current market price. So you’ll collect the premium while you wait.

If the stock drops to $250 before expiry in January two years from now, you’ll be required to buy the 100 shares at that price. But you’ll keep the premium of $30 per share, so your net cost will be $220 per share. If shares never fall to $250, the option will expire worthless and you’ll keep the entire $3,000 premium.

In sum, as an alternative to buying 100 shares for $27,000, you can sell the put and lower your net cost to $220 a share (or a total of $22,000 for 100 shares, if the price falls to $250 per share). If the option expires worthless, you get to keep the $30-per-share premium, which represents a 12% return on a $250 buy price.

It can be very attractive to sell puts on securities that you want to own. If Company A declines, you’ll be required to pay $25,000 to purchase the shares at $250. (Since you kept the $3,000 premium, your net cost will be $22,000). It’s important to keep in mind that your broker can force you to sell other holdings to buy this position if you don’t have available cash in your account.

@TigerEvents@TigerStarsdo feature so people know can sell put on sea limited which is safer than just buy the stock . Especially for traders who dun mind just earning 1%