Why Selling Puts On SMH Is Our Favorite 13%+ Yielding Play Right Now
Summary
Yields are drying up as rates are poised to move lower, but high-yield option trades remain interesting to us. SMH is a ...
Yields are drying up as rates are poised to move lower, but high-yield option trades remain interesting to us. SMH is a great candidate for selling put options. The underlying portfolio is high quality, and the fund has enough volatility to generate a significant yield. There are some risks, but we think selling $235 strike, September put options could yield meaningful cash, with a strong margin of safety.
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SMH