Naked Puts on Expedia (EXPE)
Expedia (EXPE) is one of my go-to choices for naked puts as well. Although the company doesn’t have the cash position it once did that made this a safer choice, it still remains a top player in online travel.
You might want to wait until after earnings are reported Thursday night, but that also means premiums will decline.
However, at the moment, with EXPE stock at $81.68, you can sell the Aug $77.50 puts and still get $3, which is a fantastic 3.6% return with a $4.18 cushion. So even if earnings disappoint, you might get the stock put to you at an effective price of $74.50 — that’s almost 10% below today’s price. Not bad at all, and worthy of consideration.