General Dynamics : investing with cash secured puts

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,[email protected],425, Exp. Jan 18.


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