NEW UCPTD Trade Alert - MMM - Cash Secured Put

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NEW TRADE ALERT
Friday, March 20, 2020
Standard Cash Secured Put Strategy
Opened a Cash Secured Put: 3M Corp - MMM
TRADE KRUM! (see details below)		DAYS	Cash on Cash %	Annualized
$1,008.96		35	8.02%	83.64%
Brief Description of WHY I did this trade and my expectations for it
RIDICULOUS TO ME that great stocks are being SLAMMED yet others, NOT SO GREAT are catching BIDS ... look, I'm on record as saying the DOW COULD HIT 15,000 before the bottom is in and now with the FED back stopping the US economy THIS SIDE of the PERFECT STORM might be put at ease for the moment ... the OTHER side of this perfect storm is oil CRASHING to $19.x ... which effects BIG BANKS and the debt load they carry for all the oil investments that aren't making anything unless oil is +$30 and higher ... so I'm going to keep using what the world has considered great S&P 500 type stocks ... this CSP brings my COST BASIS on my 3M shares to $137x ... so with 3M trading at $124 ... it's not HELL for me yet. ... Wish me luck, notice the 35 days ... giving this a bit of TIME to work itself out. Final note - should this be ANOTHER beginner of a sell off ... my cost basis on these shares would be $116 ... crossing fingers for now ... this CoC% play is +8% so it meets my +5% when using fresh cash right now ... for what it's worth. Finally, if assigned, this would bring my total # of shares up to 400 ... I would not allocate anymore money to 3M anymore ... TBD as this market needs to find a bottom.
Trade Breakdown with the BUY BACK Calc
COMPANY	SYMBOL	SHARES	STOCK PRICE	STRIKE
3M Corp	MMM	100	$126.00	$126.00
PREMIUM RECV	BUY BACK PRICE	DIFFERENCE	CASH PROFIT	CoC% GAIN
$10.10	$0.00	$10.10	$1,010.00	8.02%
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 performance. I have risked my own money and am accountable for the trade results.
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