OPEN NEW TRADE

CF Industries (CF):  101.26

CF Industries stock price popped this morning after getting an upgrade at Piper Sandler for a price target of $132 up from $120. 

We’re usually not big on analyst upgrades or downgrades because they happen all the time. The stock price either pops or sells-off for a few days after the upgrade/downgrade and then generally retrace back to the previous price.

There is still plenty of volatility in the CF options allowing us to be cautious and sell an out of the money put for this Friday expiration and still collect a reasonable premium.

ACTION:  Sell to open CF 3 Jun 98 put for around 1.00 to 1.10 and a 1.1% return.