Selling puts on FSLY due to AI infrastructure growth and support.
Fastly provides essential CDN and edge computing infrastructure that benefits from the scaling of AI applications. The author identifies technical support at the $20 level as a basis for selling puts. The primary risk is the competitive landscape involving major players like Cloudflare and AWS.
The author sold a $430 put expiring 10/09 for $18.00 premium (~4.2% of capital), citing WDC showing support around $430. The rationale is wanting more exposure to memory/storage as demand should grow with AI. Main risk is WDC breaking below the $430 support level.