Huntington Ingalls Industries – Sold PUTs November 2024<\/span><\/strong><\/span><\/h1>\n

During the morning of November 1, 2024, Huntington Ingalls Industries<\/a><\/strong><\/span> – HII reported its third quarter results. HII had several financial setbacks causing the market price of this stock to drop dramatically. Within 30 minutes, the stock price dropped $60 from $250 to below $190.\u00a0<\/span><\/p>\n

When a stock price drops this much in a short period of time, it is an opportunity to sell PUTs and make some quick cash. The Value Investment Fund sold 500 PUTs @13.70 each. Each PUT costs $1 for the respective transaction fee. The Fund netted $6,350. The strike price is $185 with a June 20, 2025 expiration date. In effect, the Fund is projecting that the market price will be above the strike price of $185 and thus, the PUTs will simply expire at that time.\u00a0<\/span><\/p>\n

Here’s the market price for June 20, 2025 PUTs:<\/span><\/p>\n

<\/span><\/p>\n

If the market price for HII is less than $185 per share, the Fund must spend upwards of $185 per share for 500 shares or up to $92,500 to comply with the terms of the PUTs.\u00a0<\/span><\/p>\n

Recall from a prior article, PUTs are an similar to an insurance arrangement. The buyer agrees to pay the seller a certain value to protect their investment if the price goes below a certain point – strike price. During the last five years, Huntington Ingalls Industries stock price has been below $185 for a total of twelve months due to the market setback driven by COVID in early 2020 thru the end of 2020. See this graph for evidence:<\/span><\/p>\n

<\/span><\/p>\n

The Value Investment Fund has determined the intrinsic value to approximate $200 per share adjusted to 2024 from the intrinsic calculation performed in 2021. This is a highly stable and solid investment with very little downside risk. Simply stated, it is wonderful investment if the market price drops below $195 per share. Furthermore, selling PUTs with long windows of time to recover from current depressed market value is an opportunity to make some quick cash. Act on Knowledge.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Huntington Ingalls Industries – Sold PUTs November 2024 During the morning of November 1, 2024, Huntington Ingalls Industries – HII reported its third quarter results. HII had several financial setbacks causing the market price of this stock to drop dramatically. Within 30 minutes, the stock price dropped $60 from $250 to below $190.\u00a0 When a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"site-sidebar-layout":"right-sidebar","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[47,49],"tags":[],"class_list":["post-24080","post","type-post","status-publish","format-standard","hentry","category-investment-fund","category-military-contractors"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts\/24080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/comments?post=24080"}],"version-history":[{"count":1,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts\/24080\/revisions"}],"predecessor-version":[{"id":24083,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts\/24080\/revisions\/24083"}],"wp:attachment":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/media?parent=24080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/categories?post=24080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/tags?post=24080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}