Selling CNQ puts for income.
Canadian Natural Resources will benefit from a rebound in oil prices. Meanwhile, the company has been generating reliable profits while paying a lucrative dividend. The company’s dividend should help to put a floor under the stock as investors will buy any pullback to lock in income.
By selling the January $42 puts near $1.80, we’re able to collect an annualized yield above 35% while also giving us more than $1.00 per share in cushion between the current market price for CNQ and our strike price.
- Sell (to open) 2 CNQ January 21st $42 puts
- Limit: $1.80 or more
- The new position will represent roughly 8.7%% of our model.
~~~~~~~~~~ - 13:32 Executed
- Sold 2 CNQ Jan 21st $42 Puts @ $1.85