On Friday I opened a CSP position on General Dynamics . GD belong to Dividend Aristocrats list. Dividend Aristocrats are a group of S&P stocks that have boosted their annual dividend payouts for at least 25 years and whose individual market cap exceeds $3 billion.Fundamentals about this company are really good. GD closed this week @163.81 . Its fair value is estimated at about $200. It is trading around 18% below its intrinsic value. I am available to own GD stocks if it reaches further discount. I put my MOS at 25% from its intrinsic value.This time I will look at weekly expiry because AROI (Annual return on investment) is better than monthly one, 14% vs. 7.4%.
Let’s give a look at price and volatility
IV is decreasing and is going lower than Historical volatility.
There is a good support point at 155, but I see a synthetic short stock at $175 and $180 strikes.
There is a good Calls concentration at 162.5 (ITM).
Max Pain @185.
FINAL CONCLUSION :On Friday Jan 11, 2019 I opened 1 GD CSP strike $152,5@0,425, Exp. Jan 18.