UBS downgraded Raytheon Stock (RTN) to a neutral outlook today sending the stock plunging.
The stock tumbled on the news closing down $8.44 to $177.37 for a loss of 4.54%. The stock is trading at 18.3 times price to earnings which I think is quite good for the Aerospace and Defence Sector which is usually around 22 times. The company pays an annual dividend of $3.77 for a 2.13% return which is in-line with the industry. Payout ratio is also in-line with the sector at 33.5% leaving plenty of room for further dividend increases and payouts. Debt to capital is very low at 29.84% which is well below the industry average of 70%. Revenue is $27.1 billion.
Raytheon Stock (RTN) Trade From Tue Apr 2 2019
On Tuesday April 2 I had sold puts in RTN stock. The collapse of the stock was a huge opportunity for much bigger profits than what I earned yesterday. The problem is I did not want to risk more capital in the trade.
Here is how I earned three times the original profit, reduced the amount of capital exposed in the trade and can now make further trades in Raytheon Stock (RTN) with the capital that has been freed up.
This method can be used to repair and/or rescue many types of trades in similar situations.
This strategy article is for FullyInformed Members.
Raytheon Stock (RTN) Plunge Opens Up More Profit Making Opportunities – Apr 3 2019
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.