Today, Chris Thom - CIM, DMS, FCSI and Shannon Saccocia, CIO, Boston Private commented about whether XLE-N, IYH-N, CLF-N, GM-N, SU-T, NVDA-Q, MEG-T, TRP-T, SHOP-T, BAM-N, PLTR-Q, NKE-N, CVE-T, TD-T, META-Q, ENB-T, UBER-N, QSR-T are stocks to buy or sell.
Doesn't own high-PE tech names like this, and shares have run up so much. Maybe wait for a pull back to $90-100 to enter. In this case, he'd sell a put: sell the May $100 put for $8.85; this will generate nearly 9% over 3 months if the stock doesn't drop more than 12%. Can't recommend this. Then again, you can make money if this stock doesn't rise above current levels.
If the options on a stock are expensive, he will use a call spread because it reduces the outlay. Uses this occasionally. If you buy an expensive option, try to sell an expensive option. A drawback is that if a stock moves quickly and your option is out a couple months, you will realize the full upside. Get the direction and timing right.
Trades around 20x PE. Options: implied volatility is over 30, so you're paid twice as much as the broader market. Because the stock has been under pressure for a long time, these options are more expensive than others. Currently, at May $70 puts you can get $3.90, an attractive 5% return if shares stay flat over 3 months.