This is our 2nd newsletter today. We added a VERY speculative position. This is certainly not an ideal position for most investors/traders. The potential to lose the entire investment is possible. The potential to double or triple the investment is also there. We have sold a cash secured put on a very very small cap stock. The company is a specialized tech services company that support data center infrastructure, high-performance computing and AI. It is a true small cap with a market cap of only 308m. We took the premium received from selling the short put and bought shares of stock. The details are as follows: Sell to open: TSSI Feb 20th (monthly) 10.50 strike put
Credit: 1.00
Max Risk = $1,050 (getting put the stock at 10.50/share cost basis and having it go to zero in value)
Max Reward = 1.00 or $100.00
However, we took the $100 received and bought 10 shares of stock at 10.63 per share (total cost of these shares was $106.30 so we used $6.30 from our cash reserve along with the $100 received)
This is a VERY high risk/speculative style of stock!!!