Selling JWN puts for income.
Nordstrom Inc. (JWN) is a high-end retailer in the middle of a turnaround process.
In the past, JWN has been a casualty of the decline for traditional mall locations. But the company’s management is working hard to beef up its e-commerce business along with brand awareness and engagement.
Earlier this month, shares gapped higher following a very positive earnings report. Since then, the stock has consolidated even while other retail stocks have been under pressure.
This relative performance should lead to a higher stock price with any positive data for spring consumer spending.
By selling the May $25 puts near $1.55, we’re able to collect an annualized yield near 39%, while also giving us roughly $1.50 per share in cushion between the current market price for JWN and our strike price.
- Sell (to open) 2 JWN May 20th $25 puts
- Limit: $1.55 or more
- The new position will represent roughly 5.1% of our model.
- 10:13 Executed
- Sold 2 JWN May 20th $25 Puts @ $1.64