Long
Pick Up This High Yielding Value
Morning all!
An oft-overlooked stock, RAD is trading at a solid value to it's underlying performance on a number of metrics. As it happens, investors weren't happy with the previous earnings report, and the stock has slid some 30%+ in the last few weeks. This presents a great opportunity for long term investors -- selling the 11 strike, October monthly puts. Currently trading at around 0.57 in credit, committing to buy just 100 shares, or a $1,043 outlay, would earn you $57 over the next 93 days. This is a 5.4% return on a high probability option trade, where getting assigned on the stock could very well be considered a blessing, not a curse. Annualized, this trade earns about 22% annualized cash on cash, and currently has almost a 30% margin of error.
Worth taking a look at~
Cheers!
An oft-overlooked stock, RAD is trading at a solid value to it's underlying performance on a number of metrics. As it happens, investors weren't happy with the previous earnings report, and the stock has slid some 30%+ in the last few weeks. This presents a great opportunity for long term investors -- selling the 11 strike, October monthly puts. Currently trading at around 0.57 in credit, committing to buy just 100 shares, or a $1,043 outlay, would earn you $57 over the next 93 days. This is a 5.4% return on a high probability option trade, where getting assigned on the stock could very well be considered a blessing, not a curse. Annualized, this trade earns about 22% annualized cash on cash, and currently has almost a 30% margin of error.
Worth taking a look at~
Cheers!
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