General Dynamics 4 : Sold Cash Secured Puts

Opened new position on Friday . My last CSP expired and I collected my credit. Ready for a new position.

Let’s do our usual preliminary analysis.

Open Interest

Nothing good. I see a wall of ITM Put (short sign). Strong Put support @160 and 150.

Volume

There is volume @165 and 162.5 but considering a negative week maybe is better stay careful. It’s true I am available to own General Dynamic stocks but I prefer to buy at the lowest possible. So I think to opt for 162.5 strike.

Final Conclusion : Sold 1 Weekly CSP strike [email protected] Expiry Feb 8, 2019. Weekly return 0.21% , Annual return on investment 11%.

Share on your social this article!