General Dynamics 2 : Sold Cash Secured Puts

Last week I sold  General Dynamics Weekly Puts OTM. They expired worthless. And I collected my credit. I am ready to open e new position. Thursday closing price was $165,72.
Let’s do our preliminary analysis
Open Interest

I see a strong support @ $160 and I see a synthetic long stock at the same strike.


At $162.50 there are few volumes, under that nothing. Considering Thursday closing price I am over 1 standard deviation, but the synthetic long stock point out a  bullish week .

Max Pain is @$185
I will try to sell 1 Put  Strike 162.5@0.70 but stock today is up and premium is falling.
FINAL CONCLUSION : Jan 18, 2019, I sold 1Weekly CSP Strike 162.5@0.50 Exp.. 01/25/2019. Weekly Return on investment 0,3% . Annual return on investment 14%

Share on your social this article!