Trade Thesis for Carnival Corp. (CCL):
- The stock is down ~11% from its recent peak as taper fears have crept in.
- This added volatility creates a nice opportunity for cash-secured puts.
- Strike Zone is $22.00 - $25.00
Trade Analysis (Click the video below)
Cash-Secured Put Analysis
Based on your personal risk tolerance, consider the following cash-secured put options with various risk/reward profiles
(target monthly yield = 1.5%-3.0%)
CCL July 16th $25.50 Put
Price (Premium): ~$0.44
MoS %: 9.1%
(target monthly yield = 1.0%-1.5%)
CCL July 16th $24.00 Put
Price (Premium): ~$0.20
MoS %: 14.5%
(target monthly yield = 0.5%-1.0%)
CCL July 16th $23.00 Put
Price (Premium): ~$0.12
MoS %: 18.0%
AMY % = Average Monthly Yield % / MoS % = Margin-of-Safety %
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