Vertiv(US:VRT) Investors·2025-10-02 17:55Core Viewpoint - Vertiv Holdings (VRT) stock has reached a new high, driven by strong trading volume, and presents a unique trading opportunity through a combination of options strategies [1]. Trade Construction - The trade involves selling a put option for Vertiv with a strike price of 135, currently trading at approximately $4.85 per share [2]. - Additionally, a bear call spread is constructed by selling a call option with a strike price of 195, trading at around $5.25, and buying a call option with a strike price of 200, trading at about $4.40 [2]. - This strategy generates a total premium of $570, with a maximum loss of $415 from the bear call spread [3]. Potential Scenarios - In the best-case scenario, if Vertiv stock trades between 135 and 195 at expiration, both the sold put and bear call spread will expire worthless, allowing the investor to keep the $570 premium as maximum profit [4]. - If the stock falls below 135, the investor will be assigned the sold put and will purchase 100 shares at 135, resulting in a net cost basis of 129.30, which is 19% lower than the current price of around 160 [5]. - If the stock rises above 200, the bear call spread incurs a maximum loss of $415, but this is offset by the $485 premium from the sold put, resulting in a small overall gain of $70 [6]. Company Ratings - Vertiv stock has received a Composite Rating of 98 out of a possible 99 from Investor's Business Daily, with an Earnings Per Share Rating of 98 and a Relative Strength Rating of 90, ranking second in its group [7].