So, I have a bunch of cash sitting idle atm. There just isn't enough I want to buy at these prices, so I've been writing a bunch of puts with it. Most of them expire in Jan.
When I bought my car 2 years ago, I got a decent rate and (partially because my employer had started layoffs) I wanted to keep my $$, so I went the loan route. Now, sitting here unemployed and looking, watching that payment go out every month, I keep thinking I should kill it. The wife and I talked last night about using the cash to pay it off in January, since it's sitting there doing nothing atm. But I'd have to wait until the Jan puts I sold expire or I buy to close the transactions.
Which got me thinking... is there a better way to do this? Let's say I needed $12.5k. And I had $50k sitting on hand. Could I find 2-4 names I would want to own that I could write puts on, at least 10% OTM, expiration within a year, and make 25% (real, not annualized) on them? The first thing I thought of was SQ, which used to be volatile enough that you could swing that kind of return. I've written a lot of SQ puts over the years. Not so anymore. PLTR qualifies right now. $17.50s practically print money. 30% late in the year. Don't know where it'll sit in a month, but it'll be on the short list. Anyone have thoughts on companies you'd want to own that might swing that kind of return?