I opened a new trade against TASR last week on October 24th. The main reason was that:
- I like the stock and their product.
- I am OK to own the stock.
- I believe it has a good growth potential
- I want to generate income before I buy it.
TASR manufactures tasers, you know those fake pistols called in an ornamental language an electronic control device used by police and military enforcement mainly in areas where people believe guns kill people. Not humans, guns do.
So as the society will get weaker and sissier TASR will profit from it unless they screw up.
10/24/2013 12:33:14 Sold 1 TASR Mar 22 2014 15.0 Put @ 2
I sold this option contract before I decided to try creating my option ladder, so this trade didn’t follow that effort yet. But that doesn’t bother me that much.
What are two possible outcomes of this trade?
- The stock will trade above $15 a share at expiration on March 22, 2014 and the put expires worthless. I will keep my premium and will decide whether to repeat the trade or not.
- The stock will trade below $15 a share at expiration. I can decide to either roll the option to a lower strike and longer expiration or let the stock be assigned to me (I will buy 100 shares of TASR at $15 a share, but I still keep my $2 premium).
Happy Trading!
Great way to go !! Would like to see what your outcome would be.