How to Buy SMCI for a 10% Discount, or Achieve a 41% Annual Return

Group 1 - Selling cash secured puts is a strategy to generate extra income by writing put options while setting aside cash to buy the stock if assigned [1][2] - This strategy is considered bullish but less so than outright stock ownership, suitable for investors who expect the stock to remain flat or rise slightly [2][3] - Cash secured put sellers are prepared to take ownership of the stock, while naked put sellers aim solely to generate premium without the intention of ownership [3] Group 2 - The closer the put option is sold to the current stock price, the higher the premium and the likelihood of assignment [4] - An example with Super Micro Computer (SMCI) shows that selling a put option with a strike price of $40 while the stock trades at $42.92 yields a premium of $165 [5] - If SMCI trades above $40 at expiration, the put option expires worthless, allowing the seller to keep the premium, resulting in a net cost basis of $38.35 if assigned, which is a 10.65% discount from the initial trading price [6]