Selling HPQ puts for income.
HP Inc. (BBBY) is known for it’s office products including computers, printers and consumables like ink and toner.
The stock offers investors deep value, trading at just 8.6 times expected earnings for next year.
Shares have held up well even with the overall market volatility, and HPQ is one of the safe areas that investors prefer in early 2022. This level of safety should continue to support a higher stock price.
By selling the March $37 puts near $1.60, we’re able to collect an annualized yield near 36%, while also giving us roughly $0.90 per share in cushion between the current market price for HPQ and our strike price.
- Sell (to open) 2 HPQ March 18th $37 puts
- Limit: $1.60 or more
- The new position will represent roughly 7.6% of our model.