Price is 250% above our fair value of $44.30 (range $29.51–$59.10, 2 of 4 models). Being this far above our estimate has had no bearing on what the shares did next, 2022–2026.
Prices as of 11:50 PM ET, Sep 21. Check the live quote before you send an order.
The put
Skip
Skip the put. It pays a lot because LEU can drop a lot. Wait, or buy shares.
If it goes against you: you buy 100 shares at $155, which after the $1,130 you keep works out to $143.70 a share. Below $143.70 you are down on the trade. From that day the shares take above is the one that applies.
The order, if you sell it anyway
You get$1,130 (limit about $11.30)
If it fallsBuy 100 shares at $155
Cash to hold$15,500
Close earlyBuy back at about $5.65 ($565)
Chance you buy the sharesabout 37 in 100
ContractLEU Oct 16 $155 put
ActionSell to open
In your broker app: open the stock → Trade → Options → Sell to open → pick the contract shown here.
Why skip
The put: Oct 16, $155 strike, 25 days out. Pays $1,130. Roughly a 37-in-100 chance you end up buying the shares.
On paper: 106% a year. That number assumes LEU keeps moving like it did the past two years. Take that away and it is -22% a year. That is why we say skip.
Next earnings Nov 4, after this put ends. We never sell a put across a report.
If you already own 100 shares
Income call
For income on LEU you already hold: sell the Oct 16 $195 call and take $198 now. If LEU climbs to $195 by Oct 16, your 100 shares are sold at $195, so only do it if you're happy selling there.
If it climbs past $195 your 100 shares are sold at $195 and you keep the $198. That is the trade working, not a loss.