Shorting Out-of-the-Money Amazon Puts Generates Attractive One-Month Yields

Amazon Inc. (AMZN) stock has been flat for more than a month. It makes sense to take advantage of this by selling short out-of-the-money (OTM) AMZN puts and picking up attractive yields. This article will show how to make a 1.8% yield by selling short AMZN puts at a 5% lower strike price.

AMZN is at $210.28 in midday trading on Monday, March 23. This is where it was in early February, but well below its 3-month peak of $247.38 on January 9.