Sprouts Farmers Market: Option Trade Opportunity at a Discounted Entry

2 months ago

"Stock number two is a stock I had until recently, but it's getting interesting again. I have puts on it at about $80 a share. But let's say I want to add to that – if I go to the options chain and look to buy it for $75 in the next month, I'd get paid nearly 86 cents per share, which equates to a 33% cash return on my money. This is me being paid to wait for the stock to fall to my desired price. It's a clear signal that the fundamentals are solid despite the current 52-week low, making it a potential trade setup if the price aligns."

The speaker presents a trade call for Sprouts Farmers Market by emphasizing an options strategy. He is targeting an entry around $75, where selling puts provides a significant cash return, highlighting the company's solid fundamentals despite its depressed price. This approach is positioned as an opportunistic trade for investors looking for short-term, option-driven returns.

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