General Dynamics 9: Cash Secured Puts

April 10, opened my ninth GD position.

I remember that Morningstar DCF model estimates GD fair value @$207. P/E = 15.10 ; Forward P/E= 14,51 ; 5Yr P/E=17.43 . Stock is undervalued.

GD is a member of the Dividend Aristocrats. It could be a good opportunity for dividend hunters.

I am always available to to own it in case of assignation.

Let’s do our preliminary analysis and let’s see where buyers and seller place their trades.

Open Interest

OTM put@165 ( could be a good support) and OTM call @170 (resistance).

Options Volume

Under 1 STD I found some volume @162.5 .

Max Pain @170

Conclusion : Sold 1 CSP , strike 162.5@0.57 Exp. Apr 18 . Weekly return 0.35% , AROI 16%.

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