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hey guys this is steve at option income hey welcome back to the channel where we talk about stocks and options hey i'm not a financial advisor this isn't financial advice uh this is just transactions that i'm doing in my account and you can watch for educational purposes and learn the processes okay so what i did here on vista outdoor i sold uh three contracts option contracts i sold puts on this and i was just going to go through um kind of the transaction real quick i'm going to show you a a little clip from cnbc that highlighted the earnings on this there was very positive earnings this thing jumped in price i bought the contracts back at a cheaper price now actually in the video i did a quick video of me actually closing this out and then i explained the logic behind you know why i closed it at the percentage i did and kind of went through that at the end of the video here but right now i just wanted to show you the actual transaction this was vista outdoor it was something that i found in my screener i talked about it on prior videos actually and i've i've really loved this um company and stock uh they were a zax rank one which um you know was an outperform ranking based on uh zach's research um and i just um looked at it as a super value play and it actually just turned out actually fantastic the way this whole thing played out so let me show you real quick and basically vista outdoor engages in the design manufacture and marketing of consumer products in the outdoor sports and recreation markets it operates through the following segments shooting sports and outdoor products so they're also into ammunition selling ammunition and things like that so apparently those sales just skyrocketed which really helped their um overall numbers you know their market caps only about 2.7 billion uh priced earnings ratio is about eight and so very reasonably uh valued so we go down here you can see the article vista outdoor stock surges on big earnings beat with ammunition driving 49 jump in shooting sporting sales and then analysts ratings were at 100 10 ratings all buys um earnings they just reported so the estimated was 1.78 per share they actually came out at 241 and you can see the beats you know pretty much every quarter they have beat on earnings so that's you know really good story there and then if you look at here what i did i basically um sold a put here november 1st and i collected up front so when we sell puts remember you collect money up front so my average was a dollar 15 for three contracts and then i bought those back at 20 cents and this was just um you know this was november 4th so just you know what three days later i was able to buy these back so i collected 345 bought them back at 60 bucks and that was so quick that i was able to do this i sold a 40 strike price you can see here and they were supposed to expire on 11 19 so you know i was able to do this much quicker and that's why i like selling my when i sell puts i like doing a four week expiration because i can collect that higher premium up front and then if the stock price does really shoot up then um you know you just get that higher amount and then you can just buy them back cheaper and you don't have to hold them the full four weeks like this one you know i only have the three days but you know you're collecting that higher premium and you know you can just get bigger bang for your buck i think so anyway let me go in i'm going to show you a quick video clip here of um vista outdoor and i'm going to show you you know cnbc basically highlighted them i'll do a quick 10 to 15 second clip on cnbc and then i'll go into the actual closing of it you can actually see what i did in robin hood i actually closed it you can watch it being filled and then i go through my logic so make sure you listen to that because i kind of tell you you know my thought process when i close um puts and you know that i'm selling and why and kind of how i do it so anyway uh let's get into this there's another seven in the outdoor product statement that are growing um as well yeah certainly broke across the board to your point thanks for joining us today so this has now dropped down to about 25 cents so i'm gonna buy these back i've got three of them so i just wanted to show you how to do this so buy to close i'm going to put in three and i'm going to go ahead and do 0.25 and we're gonna go ahead and try to see if we can get this filled okay good so got it filled um you know it dropped a little bit lower here just as we spoke but um you know basically um you know i i pretty much sold three puts and the strike price was at 40 here it was a forty dollar um strike and these were supposed to expire uh these contracts on eleven nineteen so basically um this morning um vsto basically um announced that they had you know pretty much record earnings um really great quarter i was looking at this from a value perspective because the pe was around seven on this and so anyway i decided to sell puts and i held them you know uh throughout the earnings i figured they were gonna have a good earnings report they were zach's rank one stock so i do always take that in consideration usually those do pretty well so anyway it was a really good trade for me i just thought i'd show you basically how easy it is when you sell puts how easy it is to close it and since these were up 70 something percent like 78 percent i just wanted to go ahead and just take the profit because to wait for the other 22 and maybe have it fall back i didn't want to take the chance so that was the decision making around these three contracts that i sold it was about 12 000 in collateral at 40 dollars a piece one contract is a hundred shares so you figure four thousand collateral a piece um but you know a dollar fifteen uh is what i received credit times three so about 345 bucks i just bought them back at 25 cents so i bought them back for 75 bucks so not a bad um not a bad trade and i just wanted to show this as an example of you know how to close um these options after you sell puts how to actually close them out so that's it on this video guys i just wanted to do this real quick for anybody that's uh learning and that sold puts and may have not ever closed them or made the decision i never run these until expiration i don't generally i usually always close most options that um you know whether i'm selling or buying i i normally don't let them you know go to expiration so on these you know percentage-wise i always usually generally if it's over 50 percent um i usually will close them out for a profit uh these just happened to uh skyrocket this morning and it went up to 78 percent uh profit so just decided i got lucky and decided to close them out wanted to use this an example for a video for you guys so if you like this video and you like these kind of videos make sure you smash that like button and uh make sure you subscribe to our channel we're doing this kind of stuff all the time and make sure to watch all of our videos [Music]