Trade Thesis for The Walt Disney Co. (DIS):
- The stock is down ~13% from its recent peak as taper fears have crept in.
- This added volatility creates a nice opportunity for cash-secured puts.
- Strike Zone is $161.00 - $167.00
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%)
DIS Sept 17th $170.00 Put
Price (Premium): ~$3.25
MoS %: 3.8%
(target monthly yield = 1.0%-1.5%)
DIS Sept 17th $165.00 Put
Price (Premium): ~$2.05
MoS %: 6.6%
(target monthly yield = 0.5%-1.0%)
DIS Sept 17th $160.00 Put
Price (Premium): ~$1.31
MoS %: 9.5%
AMY % = Average Monthly Yield % / MoS % = Margin-of-Safety %
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