
Investors in Charles Schwab (SCHW) stock should consider selling out-of-the-money (OTM) puts for near-term expiration. SCHW stock is cheap enough that this strategy allows you to both make extra income and provide a way to lower your average buy-in cost if the short put trade is exercised.
I have written several articles about this trade in the past months, including this one on June 5, “Charles Schwab Stock Remains A Popular Short Put Play For Income Investors,” and this one on May 14, “Schwab Stock Is Still Cheap, Making Short Puts A Very Popular Income Play.”