💡 Selling Cash-Secured Puts on $SEDG 💡
📈 Trade Overview: I sold 10 cash-secured put contracts on $SEDG: - Strike Price: $11 - Premium Received: $52 per contract - Total Premium: $520 - Days to Expiration (DTE): 42 days 📊 Calculating ROI: Each contract requires $1,100 in collateral (strike price × 100 shares). For 10 contracts, the total collateral is $11,000. ROI=Total Premium ReceivedTotal Collateral×100\text{ROI} = \frac{\text{Total Premium Received}}{\text{Total Collateral}} \times 100ROI=52011,000×100=4.73%\text{ROI} = \frac{520}{11,000} \times 100 = 4.73\% That’s a 4.73% return in just 42 days! Annualized, this would equate to approximately 41% ROI if repeated consistently. 🚀 💡 Why I Took This Trade: 1. Strong Support: $SEDG shows solid technical support near the $11 level, reducing the risk of the stock dipping below this strike. 2. Risk-Adjusted Return: The premium offered a good risk/reward balance, especially with the relatively low probability of assignment. 3. Capital Efficiency: Selling puts keeps me in control. If assigned, I’m comfortable owning $SEDG at $11/share, a discount from current prices. 🧠 Key Learnings: - Selling cash-secured puts is a fantastic way to generate income while positioning to own shares at a discount. - Always calculate ROI and assess risk before entering any trade. 🚀 February Progress Update: 💰 Premium Collected: $1335 / $2000 Goal ✅ Keeping the momentum strong!