I wanted to sense check my thoughts on monthly vs longer-term CSPs, using ASTS as an example.
**Sentiment**: I am bullish on ASTS with 900 shares and do not mind owning more.
**CSPs**: Only started considering CSPs as a way to make some extra cash if I was about to buy ASTS anyway.
Keeping **$65 strike** as the constant:
* Oct 16th 2026 (30-days) selling at $8.60 (13% return on $6500)
* Dec 17th 2027 (18 months) selling at $23.00 (35% return on $6500)
Considering the current share price of $58 and state of the space industry, I will most definitely get assigned on a monthly $65P. While I do not mind this, if I am to spend $6500, why not sell a longer CSP and make a 35% return in the process? I am not confident that $6500 invested elsewhere would guarantee a 35% return.
Keeping **35-delta** as the constant:
* $55P Oct 16th 2026 (30-days) selling at $2.92 (5.3% return on $5500)
* $65P Dec 17th 2027 (18 months) selling at $23.00 (35% return on $6500)
Not sure if this is a better comparison. This is speculative of course, but I may now be a little less likely to get assigned on a monthly $55P. Selling monthlies at a 35-delta over the same period of 18 months would also generate a far higher premium income.
**Questions**:
* Am I looking at this the right way? Does it make sense to think of your CSP premium as returns on an investment -- if so, a 35% return seems to be great IF that $6500 is to go into ASTS anyway. In case ASTS sits higher than $65 in 18-months, I have just made "free" premium. I would lose out on potential gains on the 100 shares I would have owned if I had just bought the shares outright, but I have the other 900 shares anyway.
* Is it advisable to sell multiple monthlies given the better cash flexibility and higher earning potential? My only issue with this is consistency i.e. I might be successful over 3 months before I inevitably get assigned, and in this case, I have "only" made $900, a far lower return than if I had just "set and forget" a longer CSP.
What would you guys do - monthly CSP, yearly CSP, or no CSP at all for whatever reason? Any feedback is appreciated!