I sold a put this week in CMG
as the stock is under pressure (again) and had wanted to jump in even earlier (where the green arrow is) but had not researched and checked into what was going on with the stock. While the stock did recover and have a decent swing, which would have allowed me to close......I am glad I waited as a practice for restricting those impulsive trades. I traded this name last year and had mixed results with my 401 getting decent gains and my reg-T taking a sizeable hit. I have the means to defend better this time and still hold min. 50% cash reserves. I like the stock and the company overall and have problems finding anything in the market that I don't find to be massively overpriced. Last year when I was trading CMG
and selling puts weekly (pretty decent premium) I noticed that the float was shrinking but the short interest was the same. With only ~28M shares outstanding and ~4M short....this seems like it could have good potential to the upside. I got a little better trade placement by waiting but does not mean I won't get taken for a ride again, with earnings
coming soon I will look to manage if the stock runs up a little into earnings
or hope that IVR
will stay high when/if it gaps down after earnings
to help the roll. I probably should have waited and played the "after earnings" event but have been sitting on the sidelines this year with not many trades and need to take some risk in order to make some money.