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
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 [email protected] but stock today is up and premium is falling.
FINAL CONCLUSION : Jan 18, 2019, I sold 1Weekly CSP Strike [email protected] Exp.. 01/25/2019. Weekly Return on investment 0,3% . Annual return on investment 14%