$ARM - here is how I'd approach selling options. My approach...
Arm designs the core tech inside most phone chips. Its designs now show up in AI chips too. Arm does not build chips itself. It licenses the designs.
The setup: pick a strike price below where the stock trades. Pick one you would be happy to own. Sell a cash secured put at that strike. Choose an expiration a few weeks out. You collect the premium in cash right away.
Why this fits: chip design names with big AI ties tend to swing hard on industry news. Bigger swings often mean richer premium for sellers.
Possible outcomes:
- The stock stays above your strike. The put expires worthless. You keep the premium.
- The stock drops below your strike. You get assigned. You buy shares at that price. The premium lowers your real cost.
Risk: chip stocks tend to move together as a group. Bad news for one name can drag the whole group down, even a strong business like this one.
I like using cash secured puts on volatile chip names instead of buying the stock outright.
What would your strike be here?
Want more details on strike price, etc? Let me know below!
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