3M : Cash Secured Puts

May 16, opened a new position.

According to Morningstar valuation, 3M is trading around 9% under is fair value ($190). I like this company and I am available to own stocks in case of assignation.

I start with my usual preliminary analysis just to see where buyers and sellers place their trades.

Open Interest Chart

ITM [email protected] show me a potential bearish week. Except this may be I will see something more with Friday evening chart.

Option Volume Chart

There is a strong OTM put movement @170, maybe a support sign. Anyway I am going to look for my premium under 1STD.

Conclusion: Sold 1 CSP , strike [email protected], exp. May 24. Weekly return 0.33%, AROI 15,5%