Yesterday I sold some naked puts on SQNM. The stock was about $6.12 and the Aug $5.00 puts were at $0.40. I sold the $5's for 0.40 and sat back to watch the stock for two weeks and hope to not get called out. I was already in this stock on a covered call play. Then right after the bell earnings were released and the news wasn't great. SQNM opened around $5 today and has since moved to near $5.30. I bought back my call options for a net gain of $0.40 and $0.60 and now have the shares clear to capture the run up.
Oddly the puts are worth less today than yesterday when the stock was a dollar higher! So I'm going to sit on the puts. Even if I'm put, my cost basis would be $4.60, so I'm looking good there.
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