WESTERN DIGITAL (WDC) BUYWDC 82,48 -3,37 -3,93%
The chart tells me it could retrace back to mid-60’s if it really wanted to. However, it is currently sitting dead on the 200 day moving average of $79.16 and I do not see it going under $70. I very much consider WDC best-of-breed in the storage industry.
Therefore, I highly recommend selling the JAN 70 PUT @ $4.33 each. Return will be roughly 1.2% per month and break-even would be around $65.67 using Thursday pricing – which is perfect.
It should open lower on Friday making this trade even better. If it keeps falling simply sell more PUT’s for more premium. Remember market 12 month PT is around $110 average with $140 upper-end. I consider this N. Korea bullshit a buying opportunity.
Worse-case you own it at $65 and you can sell calls against it…