NEW UCPTD Trade Alert - GS - Cash Secured Put

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NEW TRADE ALERT
Thursday, March 12, 2020
Standard Cash Secured Put Strategy
Opened a Cash Secured Put: Goldman Sachs - GS
TRADE KRUM! (see details below)		DAYS	Cash on Cash %	Annualized
$1,698.96		29	10.63%	133.73%
Brief Description of WHY I did this trade and my expectations for it
NO ONE EXPECTED THIS and Im not even sure this is a good trade ... but what I do know is this ... with selling premium we get DOWNSIDE PROTECTION ... with this trade I actually had a BUY LIMIT ORDER in for $160 ... and this thing as with ALL stocks broke right thru that thin ice and I would have been holding the bag! ...Now, NO ONE is out of the water with the DOW being down some -9% right now ... so I allocated 100 shares of money at the $160 strike and gave this 29 days to work itself out. Worse case ... this thing FALLS below my breakeven price of $143 ... GUYS AND GALS, ALL HELL WILL HAVE BROKEN OUT if that happens ... hold on, if this effects you emotionally, TAKE A WALK ... take your mind off it ... the pain is here ... now we just need a BID on these markets and we will probably see on of the greatest snap backs EVER! ... if not, well ... hang in there folks!
Trade Breakdown with the BUY BACK Calc
COMPANY	SYMBOL	SHARES	STOCK PRICE	STRIKE
Goldman Sachs	GS	100	$160.00	$160.00
PREMIUM RECV	BUY BACK PRICE	DIFFERENCE	CASH PROFIT	CoC% GAIN
$17.00	$0.00	$17.00	$1,700.00	10.63%
Always look at a companies chart ... it tells a story and that story could be UP or DOWN

Education Corner
Great Covered Call video posted at
Cash Secured Put - Description -The cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. The goal is to be assigned and acquire the stock below today's market price. Whether or not the put is assigned, all outcomes are presumably acceptable. The premium income will help the net results in any event. The investor is bullish on the underlying stock and hopes for a temporary downturn in its price. If the stock drops below the strike, the put may be assigned. That would allow the put writer to buy the stock at the strike price. The effective purchase would be even lower: strike price less the premium received. There are two principal risks. First, the stock might not only dip but plummet well below the strike price. The investor must be comfortable with the strike price as an acceptable long-term acquisition price, no matter how low the market goes. Source - https://www.optionseducation.org/strategies/all-strategies/cash-secured-put
Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its preformance. I have risked my own money and am accountable for the trade results.
Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com
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