Huntington Ingalls Industries – Bought Stock, Sold PUTs

On February 6th, 2025 Huntington Ingalls Industries reported their 4th quarter results. Due to Huntington’s inability to get the Navy’s signature on some contracts, the shipyard’s backlog has significantly changed which in turn affected the market’s opinion. The stock price dropped $32 per share. The Fund took advantage of this and proceeded to purchase 500 shares at $160 per share market price with a $500 fee to close the transaction. Total investment was $80,500. 

The Fund now owns 700 shares of Huntington Ingalls Industries. 

In addition, the Fund sold PUTs on Huntington Ingalls Industries with a strike price of $150. Sold 500 PUTs netting $7.20 each after a transaction fee of $1.00 per PUT. Total cash receipts equals $3,600 (500 * $7.20/each).

The cash proceeds from the sale of Essex Property Trust funded this purchase of stock. From the $122,000 of cash, the Fund proceeded to pay off the Margin Account balance of $38,000 and expend another $80,500 to own Huntington Ingalls Industries. Act on Knowledge.