Short - put options trading
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Domino's Pizza Stock is Undervalued Here - Shorting One-Month Put Options Yields 1.67%
Yahoo Finance· 2025-11-18 17:52
Core Viewpoint - Domino's Pizza (DPZ) stock is considered undervalued with a free cash flow (FCF)-based price target of $498.00, despite recent market fluctuations [1] Summary by Sections Stock Performance - DPZ stock is currently priced at $404.54, showing resilience as one of the few stocks gaining in a declining market [1] - Over the last month, DPZ stock has decreased by $13.94, or 3.33%, from a previous price of $418.48 [3] Options Trading Strategy - A cash-secured short-put trade was previously discussed, where an investor secured $40,000 and received a premium of $605.00, yielding a 1.513% return for one month [2] - The current midpoint premium for the $400.00 put contract is $2.55, allowing the investor to realize a profit of $350.00, translating to a 0.875% return for the month [3] Rollover Trade Opportunity - Investors can initiate a new 1-month cash-secured short put trade with a December 19, 2025, $390.00 put option, which has a midpoint premium of $6.50 [4] - This new trade offers a cash-secured short-put yield of 1.667%, allowing an investor to secure $39,000 and earn $650.00 immediately [5] - Over two months, the total profit from both trades would be $1,000 on an average investment of $39,500, resulting in a monthly return of approximately 1.2658% and an expected annualized return of 15.19% if repeated monthly [5]
Make a 3.5% Yield In One Month By Shorting Cash-Secured OTM Palantir Put Options
Yahoo Finance· 2025-11-17 17:05
Last month, I recommended shorting 10% out-of-the-money (OTM) put options in Palantir, Inc. (PLTR) to yield 4.24% over one month. PLTR closed with no assignment to buy shares. A 3.5% yield is possible for a 9.8% one-month OTM short put play. This was in the October 19, 2025, Barchart article, “How to Make a 4.2% Yield By Shorting Palantir Put Options Over the Next Month.” At the time, PLTR was at $178.15, and I suggested shorting the $160.00 put option expiring Nov. 14 for a $6.78 midpoint premium, or 4.2 ...