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Stock impact report

Cinemark Options Offer A One-Month 13% Return [Seeking Alpha]

Imax Corporation (IMAX) 
Last imax corporation earnings: 4/30 07:00 am Check Earnings Report
US:NYSE Investor Relations: imax.com/content/investor-relations
Company Research Source: Seeking Alpha
SummarySelling naked, or cash-secured puts, in this volatile environment can be very profitable.However, you must choose a value stock selling at a heavy discount.Cinemark is just such a stock.If not put to you, you'll walk away with a 13% return in one month.If put to you, you'll get the money at the stock at an insane bargain price.As any option trader knows, volatility generates higher premiums.When the market is behaving normally, and we are in a flat or bull market, selling naked puts can be a solid, reliable, and relatively low-risk way to generate regular income.But what happens when we get blindsided by a market crash and stocks get put to us?That's exactly why you cannot sell naked puts willy-nilly against any old stock that offers a juicy premium.You must be highly selective, and that means selling naked puts against value stocks.The theory is that a value stock is already cheap and selling below intrinsic value and, provided the story doesn't change, having it put to you is Show less Read more
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