Consumer Cyclical
LOW
Lowe's Companies Inc.
Income from Lowe's (LOW) with covered calls and cash secured puts. Value alternative to Home Depot with strong dividend.
Monthly Premium1.2-2.0%
Annualized Return14-24%
Stock Price$250-280
IV RankModerate (30-45)
Options LiquidityGood
Dividend Yield1.8%
Why LOW for Covered Calls & Cash Secured Puts?
LOW is the value play vs HD with turnaround progress. Strong capital returns and dividend growth. More affordable than HD.
Example Covered Call Trade
LOWCovered Call
Strike Price$280 (6% OTM)
Expiration30 days
Premium$4.00 per share
Return If Flat1.5% ($400)
Return If Called7.3% ($1,950) + dividend
Keep Probability72% keep shares
Recommended Strategy for LOW
Sell calls 5-7% OTM monthly. Good alternative to HD for smaller accounts.
Risks to Consider
- Second to Home Depot
- Housing market sensitivity
- DIY vs Pro mix
- Consumer spending cycles
Analyze LOW Covered Calls Now
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