A good way to get into a stock is through a Bull Put.
BMY (Bristol Mayers) is a company with good Fundamentals, within my Watchlist. Right now is a bit overbought but yesterday I applied a Bull Put to wait for the price to go down to $24. Meanwhile, I get the credit of the trade.
BULL PUT DEC 24/19 for a credit of $0.20
If on December expiration price is over $24, I keep the credit (5% ROR).
If price goes down between $24 and $23 and I am assigned, I would place a Covered Call.
If price breaks dowm the $23 level, I would adjust the position to a Collar Trade (with stock at $24 after assignation).
SharkOpciones.
