General Dynamics 8: Cash Secured Puts

March 29 , Opened my eighth position. GD is still undervalued compared to Morningstar Fair Value ($207) and compared to its 5 Yr. P/E (17.74). As usual I am available to own this stock in case of assignation.


Let’s see Open Interest 

OTM [email protected] and @167.50 . ITM call @167.50 (posiitive sign). OTM [email protected] Week seems to open upwards. 

Volume

Once calculated my Standard Deviation I seek where premium is adequate. A good compromise is strike 165.Max Pain @167.5


Conclusion: Sold 1 CSP , strike [email protected] Exp. April 5. Weekly return 0.29%, AROI 15,1%