MMM fell back below $80 in the end of week slump.
CCI is still thinking this blue chip is a "safe" play and a candidate in which to try to grind out some small profits. Sold a lot of Sept $77.50 puts for $1.15 after commissions on Friday
Picked that price level because CCI is "hoping" that it will hold above its low of last month of $77.
If that scenario comes to pass, we will pocket a 1.5% gain in 9 trading days, otherwise we own a second lot at under $76.50. Avid readers of the blog will recall that CCI still has a lot of Sept covered calls at $82.50 which are now nicely in the money. So we have two premiums in-play that represent mutually exclusive events, so one or the other is "right". Ideally the stock will stay in the range ($77.50 - $82.50), both trades are "right" and we can pocket both premiums and still own one lot of stock to make a similar play again.
(Wait...I just realized.....hope is not a strategy.....so I meant to say...with this weeks price drop not confirmed by high-volume, CCI sees MMM forming a nice reverse head-and-shoulders pattern with good support around $77....that's much better....lol)