Key insights
- The author is selling puts on Meta and Micron (MU) at strike prices of 500 and 300, respectively, citing strong relative strength for Meta and undervaluation for MU. This strategy aims to generate income through premium collection while potentially establishing long-term positions at desired price levels. The strategy reflects a moderately bullish outlook on these stocks.
Lately I’ve been selling puts on Meta and MU, targeting around 500 and 300. To me, those are really solid levels.
Some people might ask why I choose to sell puts. Honestly, it’s pretty simple. I’m building positions at key levels while collecting premium at the same time. If price never hits those levels, the premium is my profit. If it does, I get assigned at a lower price and end up with a better cost basis for a long term position.
As for why these levels. Meta has shown strong relative strength around that zone, and I like the long term growth story. For MU, around 300 looks relatively undervalued to me, which makes it pretty attractive.
By selling puts, I’m able to collect premium with a high probability setup, especially in a market that’s been influenced by geopolitical noise. It’s creating opportunities.
That said, this is just my personal view and how I see the market. Everyone has a different approach. If you’ve got a strategy that’s been working for you, I’d love to hear it.