Short Put - CAT
Cash flow play here.
High IV in CAT due to earnings soon. $100 put is trading for $1.15, or 1.15% ROC. This is 7.4% below the current price. We are looking at around $2.16 in premium per day, if not more if the premium gets sucked out faster.
CAT currently has a 2.93% divvy yield as well, if I do happen to get assigned shares. Upon being assigned, I would look to immediately sell calls for more basis reduction.
High IV in CAT due to earnings soon. $100 put is trading for $1.15, or 1.15% ROC. This is 7.4% below the current price. We are looking at around $2.16 in premium per day, if not more if the premium gets sucked out faster.
CAT currently has a 2.93% divvy yield as well, if I do happen to get assigned shares. Upon being assigned, I would look to immediately sell calls for more basis reduction.
Trade closed: target reached
Close this trade for 50% winner over night, covered at $0.57 db. 0.58% ROC in under 24 hrs. Ill look to apply this capital again in CAT on any sell offs or in other High IV areas.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.