Pick Up This High Yielding Value

14 ก.ค. 2021

Morning all!

An oft-overlooked stock, RAD is trading at a solid value to it's underlying performance on a number of metrics. As it happens, investors weren't happy with the previous earnings report, and the stock has slid some 30%+ in the last few weeks. This presents a great opportunity for long term investors -- selling the 11 strike, October monthly puts. Currently trading at around 0.57 in credit, committing to buy just 100 shares, or a $1,043 outlay, would earn you $57 over the next 93 days. This is a 5.4% return on a high probability option trade, where getting assigned on the stock could very well be considered a blessing, not a curse. Annualized, this trade earns about 22% annualized cash on cash, and currently has almost a 30% margin of error.

Worth taking a look at~

Cheers!