Core Thesis - Carrier Global Corporation is positioned as a high-quality industrial franchise with strong demand and favorable long-term growth drivers, despite facing near-term cyclical pressures in residential HVAC [2][3]. Company Overview - Carrier Global Corporation specializes in intelligent climate and energy solutions across various regions, including the United States, Europe, and Asia Pacific [2]. - The company has undergone a strategic transformation, exiting its Fire & Security and Commercial Refrigeration businesses to focus solely on HVAC and climate solutions [2]. Market Position and Growth Drivers - The company's refined focus aligns with long-term trends in energy efficiency, sustainability, and infrastructure modernization [3]. - Although residential demand is expected to soften through 2025, Carrier's commercial segment is anticipated to perform strongly, driven by AI-driven data center expansion and the demand for high-efficiency cooling systems [3]. - Tightening global environmental regulations and the increasing adoption of heat pumps are expected to create a multi-year replacement cycle that is resilient and largely non-discretionary [3]. Investment Strategy - Selling the March 2026 $50 puts indicates confidence in Carrier's business fundamentals and provides downside protection, as this level aligns with the company's 52-week low [4]. - The implied entry price of $49.20, after collecting an $0.80 premium, offers a significant margin of safety compared to the current share price of approximately $57.30 [5]. - The investment strategy is designed to capitalize on Carrier's evolution into a leading climate and energy solutions provider, which the market may currently undervalue [5].