Selling Puts on expiration day

Discussion in 'Options' started by moolah, May 22, 2020.

  1. moolah

    moolah

    Have you ever sold puts on expiration day? What is your criteria in selecting what equity options to sell?
     
  2. Only if I actually want the stock :)
     
  3. mjkielec2

    mjkielec2

    I've done this a few times with cult stocks like $BYND and $TSLA.

    When the expiration day falls on the same day as earnings, if the earnings are posted in the morning and NOT after the market closes. I will sell a few puts way out of the money at 3:15 or 3:30PM. Can make a few hundred dollars in 30 minutes if the premiums are right.
     
    Atikon likes this.
  4. Marty L

    Marty L

    I agree with Yogi. I usually want the stock for a few dollars less if I trade on expiration day but not always. My rules are 60%+ OTM and -20 delta regardless if its one day or 8 months.
     
  5. Sig

    Sig

    Keep in mind that at some brokers you chan choose to exercise your puts as late at 5:15 ET. So if you've sold puts, you're not necessarily good when the stock closes above the strike if it subsequently sinks back below it in after hours trading.