Trade Idea (IRA/Retirement Account): EMB May 21st 103 Short Put
.. for a .95/contract credit.
Notes: With a current yield of 4.032% (4.381/share annualized) versus a TLT (20 Year + Maturity Treasuries) yield of 1.607%, a play to acquire this emerging market bond fund at a 102.05 break even or below. On a one-lot basis, a bit buying power heavy, so consider acquiring a smaller amount of shares if it ever gets to around this level if short putting isn't an option here.
Me personally, just looking to deploy some idle buying power while I wait for an uptick in broad market volatility here in an underlying where, if assigned, I get paid to wait as I reduce cost basis via selling call against. An alternative go-to would be in HYG (current yield 4.676%; 4.142/share annualized), where I could see selling acquisitional puts in the low 80s (e.g., the May 83 short put (68 DTE) is paying .69 here.
Notes: With a current yield of 4.032% (4.381/share annualized) versus a TLT (20 Year + Maturity Treasuries) yield of 1.607%, a play to acquire this emerging market bond fund at a 102.05 break even or below. On a one-lot basis, a bit buying power heavy, so consider acquiring a smaller amount of shares if it ever gets to around this level if short putting isn't an option here.
Me personally, just looking to deploy some idle buying power while I wait for an uptick in broad market volatility here in an underlying where, if assigned, I get paid to wait as I reduce cost basis via selling call against. An alternative go-to would be in HYG (current yield 4.676%; 4.142/share annualized), where I could see selling acquisitional puts in the low 80s (e.g., the May 83 short put (68 DTE) is paying .69 here.
Penafian
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