Someone begged me to buy TXRC. Their belief was it is under written by Black Rock (world's largest asset holder) so it must be decent long term.
According to research: Transenterix, Inc. is a medical device company. The Company is focused on the development and commercialization of ALF-X Surgical Robotic System (the ALF-X System), and SurgiBot System. The Company's ALF-X System is a multi-port robotic surgery system, which allows multiple robotic arms to control instruments and a camera. The system features advanced technology to enable surgeons with haptic feedback and the ability to move the camera through eye movement
So it sounds futuristic and interesting.
Structuring the deal:
The stock has a range of $.65 to $2.00. The current price is under a dollar. I only want to hold a small amount for 2-3 years so it can build value and I can sell covered calls for income. If I can avoid having to pay anything for the stock, EVEN better!
I sold 7 put contracts to collect $105. Should the price of the stock stay above 50 cents over the next 6 months then I'll never be forced to buy the 700 shares at a cost of $240. I purchased 100 shares of the stock with the premium. Considering the floor is 65 cents the odds of me NEVER having to buy the stock should be in my favor!
In 6 - 12 months when the price breaks out above $2 threshold I can start collecting monthly income through covered calls on a stock I never had to buy with my own capital because of stock options. The total risk is $240 offset by the 100 shares I own.
Please, do not buy this stock because of my post. This stock could be delisted, go bankrupt, or have no long term value. I don't normally share my trades but wanted to show a risk-reward alternative set up with stock options.