LogFAQs > #962534361

My personal feeling on BBIG is that anything under $12 is a good entry price imo

TYDE will happen, it's just a matter of when. When TYDE happens we will at minimum break all time high of $12.49 in my opinion.

If I just wanted to make gains at the lowest risk possible, the obvious choice is to sell cash secured puts at the same strike your calls got exercised at. So sell a bunch of $3.50 puts. At current prices you would gain $39 per put which is a bit over 10% return on investment, and you would only lose money if it went below $3.11. The premium will be a hair lower next week probably but the general idea remains.

Now if you want a higher chance of getting assigned and think moon is possible, then you can sell at a higher strike. For instance if you were to say sell a bunch of $8 puts that expire next week your effective purchase price, even if assigned, becomes $3.40 (you'll probably have to sell them close to the bid, so I'm giving you the bid-- if you're patient you could probably get something closer to the Ask). If you DON'T get assigned it's much better than the $3.50 puts as you make that huge premium.

That's because the Bid is $4.60 on the 8p is currently $4.60. $8 - $4.60 = $3.40 effective purchase price.