Today I execute the trade on MBIA Inc (MBI) which i wrote about yesterday. I sold 1 put contract against this stock.
What is the game plan?
I will be selling puts against this stock, but trying to avoid assignemnt. If it however happens and I get assigned or won’t be able to roll the put out and away I will start selling covered calls as long as I get assigned again and get rid of the stock.
Today I sold one put contract against MBI and collected $118 premium.
02/13/2013 09:30:09 Sold 1 MBI Aug 17 2013 9.0 Put @ 1.18
If I get assigned I will buy MBI for $9.00 and my cost basis will be at $7.82 (less the premium). If I gett assigned, I will start selling covered calls as I did previously with this stock.
If the stock stays above the strike price, the put expires worthless and I’ll keep the premium and repeat the process. Also if the stock manages to run up and the put becomes worthless prior to its expiration I may consider buying the put back and selling new further in time. I’ll keep posting the progress of this trade.