Trade Thesis for Cleveland-Cliffs Inc. (CLF):
- The stock was down ~10% yesterday on Fed tapering fears.
- Tailwinds still remain for Materials sector.
- Strike Zone is $16.00 - $19.00
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%)
CLF July 16th $19.00 Put
Price (Premium): ~$0.53
MoS %: 14.2%
(target monthly yield = 1.0%-1.5%)
CLF July 16th $17.00 Put
Price (Premium): ~$0.19
MoS %: 23.2%
(target monthly yield = 0.5%-1.0%)
CLF July 16th $16.00 Put
Price (Premium): ~$0.10
MoS %: 27.7%
AMY % = Average Monthly Yield % / MoS % = Margin-of-Safety %
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