Celestica(US:CLS) Investors·2025-10-03 16:04Core Viewpoint - Celestica (CLS) stock has shown a strong upward trend since April, making it a potential candidate for bullish option traders [1] Group 1: Trading Strategy - A bull put spread is recommended for traders looking to capitalize on Celestica's stock performance, which is a defined risk strategy [1][2] - The setup involves selling a higher strike put option while buying a lower strike put option within the same expiration cycle, allowing traders to receive an option premium [2] Group 2: Trade Setup Details - Traders anticipating that Celestica will remain above $210 can sell a Nov. 21 210-200 bull put spread for approximately $2.40, generating around $240 in premium with a maximum risk of $760 on a 100-share contract [3] - If the spread expires worthless, it would yield a 31% return in seven weeks, provided the stock stays above $210 at expiration [4] - The breakeven point for this trade is calculated at $207.60, which is 17.26% below the recent closing price [4] Group 3: Risk Management - It is advisable to set a stop loss if the stock falls below $220 or if the spread value increases from $2.40 to $4.80, to mitigate potential losses [5] Group 4: Company Overview - Celestica is recognized as one of the largest electronics manufacturing services companies, collaborating with major players in the computer and communications sectors [6] - The company provides comprehensive services, from printed circuit and system assembly to postproduction support, catering to both low-volume custom builds and high-volume commodity products [6][7] - Celestica has received high ratings from Investor's Business Daily, including a Composite Rating of 99, an Earnings Per Share Rating of 99, and a Relative Strength Rating of 98 [7]