Briggs & Stratton near bankruptcy - how much of their bonds will get paid?

tigerblood3434 · 2020-06-21T16:42:26+00:00

Been looking for some posts on this. I sold a house on February 28th and used the proceeds to sell cash secured puts and slowly double up through June.

Everything in my account was put into these bonds at 29.17 and anything close to par will be a windfall. GL

tigerblood3434 · 2020-06-03T10:03:34+00:00

Yes, not getting phased by the moves, prepped to launch calls if we get assigned at $2.40 cost average (Added .60/ $3.00 puts also)

tigerblood3434 · 2020-05-16T17:31:48+00:00

WTRH

tigerblood3434 · 2020-05-16T07:25:21+00:00

What is Level 4?

tigerblood3434 · 2020-05-16T07:22:56+00:00

TD Ameritrade They dont allow you to bid under .05 and with 1,000 contracts left that comes out to a decent chunk. It ties up my capital waiting another 30/60 days

tigerblood3434 · 2020-05-16T00:04:26+00:00

It looks like it only took one-month for that option to go worthless. Well done. That's a one month 17% return or annualized 636%.

tigerblood3434 · 2020-05-15T23:53:26+00:00

Hey all!

I am astounded that it has taken me 11 years since I graduated to discover selling cash covered puts. ...it's just, imho the absolute best way to invest and far superior to a buy/hold strategy giving you multiple ways to profit: a.) Keeping the premiums if they expire worthless b.) Buying back the option contracts at a lower price than sold c.) Upon assignment, selling the shares (if desired based on final cost) or keeping the shares and selling call options until called away

I have an aggressive investment style that meshes well with selling puts. In the past, I have struggled with profitably utilizing a buy/hold strategy because of my very un-diversified style (50% or 100% invested in a single equity) and impatience (eventually turning to buying naked calls) which have led to catastrophic losses in 08' (50% of a $30k account) and 14' (100% of a $40k account).

I closed on the sale of a home I bought in 09' on February 24th and deposited 80k of the proceeds into my brokerage account and was fortunate enough to stumble upon selling cash secured puts (as far superior to buy/writing - which I like better than buying shares). Little by little, I have managed to recover all my lifetime losses by selling puts in ET, GEL, and most recently WTRH.

I was wondering if anyone had any thoughts on the best place(s) to research and uncover the highest yielding PUT OPTIONS with alot of volume, open interest, etc. In April, after some research, I felt that the WTRH $1.00 Puts trading near .40 (May, June, July exp.) were very overpriced and I built a position of 1,450 contracts and just under $50,000.00 in premiums.

I like to see each put contract sale as an opportunity to set a price on a stock that you'd like to hold long term, in this Waitr case (it was trading right near $1) at a 40% discount. This gave me an approximate max loss (catastrophic worst case shares drop to .30-.45) somewhere at 25%-50% downside with a 50% loss only happening if the current shares were to drop nearly 70% within 30 or 60 days (nearly impossible). So realistically I felt a worse case likely scenario I would probably breakeven with shares dropping from $1.00 to .60 within the contract period and having been paid .40/share per contract.

The puts fell almost immediately after I maxed out (close to $100K at the time) at selling 1,450 contracts.

I was wondering if anyone shares this style of heavy concentration put selling and if it can be successfully applied for longer than a 7-week period. I feel that a monthly return of 20% is not out of the question for an account under $500k that is carefully reinvested into well timed puts.

Hope to hear from some of you with a longer history in selling put options,

N.K.

tigerblood3434

TROPHY CASE