re: SRNE

quote:

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I don't have much experience and shouldn't be allowed access to options (thanks Robinhood). But if you want to have a $3 cost basis couldn't you write a $4 put for ~$1.00 and plan on getting assigned?

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You could. $1.10 is about where the March 2020 $4 puts are trading (the midpoint - insane spreads on the options). Or... you could write a put at the 2.50 strike and collect about .52. If I had an interest in this stock and wanted to use a simple options strategy, I’d do a cash covered put as described. That is, unless you have a reason for wanting to own it sooner than March of next year, assuming it even gets down to 2.50 by then. If not, you made $50 per contract sold - rinse & repeat. If it does, your cost basis is now $2.00/share +/-.