AST SpaceMobile, Inc. engages in building a broadband cellular network in space to operate directly with standard, unmodified mobile devices based on an intellectual property and patent portfolio. It focuses on providing mobile broadband services with global coverage to all end-users, without the need to purchase special equipment. The company was founded by Abel Avellan on May 31, 2017 and is headquartered in Midland, TX.
ASTS share price is quick volatile providing higher premium that can be collected from selling options.
I like the shares in this range of $70-$90 and do not mind owning shares. Since I am in no rush to actually own the company shares I will instead collect option premium by selling a put option which will obligate the purchase of 100 shares of stock should the put option buyer choose to exercise.
I will be looking to collect premium using options with maturity of less than 1 month time (most likely focused on weekly options).
Sell to open $70 ASTS 7/10/2026 put for $1. If you can repeat this every week you will have a 74% return at the end of 1 year.
If shares are trading above $70 at expiration you keep the premium and look to sell another option.
If shares are trading below $70 at expiration you will purchase 100 shares at $70 each. I am fine with this result as I want to own the shares in this range anyway. I can choose to hold on to shares for the long term or most likely will look to sell covered calls for more income.
To your success,
Thomas Moore
Disclosure: The author is long ASTS at this time. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
