SWK protective options strategy

NYSE:SWK   Stanley Black & Decker, Inc.
Everyone has some trusty item made by Stanley Black & Decker in their home, whether it's a power tool, lawn product, kitchen appliance, storage, etc. Its customers also include professional end users of its equipment for repairs, construction, lawncare, automotive, manufacturing, oil and gas pipelines, aerospace engineering and many other industries. It seems to be a broad, sprawling and necessary business. SWK is expected to report earnings in February, and is known to be a "safer" dividend stock. Technically minded investors might also see the falling wedge and double bottom as good signs.

On the other hand, this market and news cycle are still volatile week to week. Yesterday's optimistic stock market rally is today's fear of recession and debt ceilings. This investing strategy is a simpler way to boost gains and shield from losses, making up to 11% (11% annualized too) on $SWK options while also allowing room for a price drop of up to 23% before you lose any money.

Buy 1 $90 call
Sell 1 $95 call
Sell 1 $70 put
All expiring 1/19/24

Capital required: $6782


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