03-07-2022, 01:13 PM
(03-07-2022, 10:32 AM)Kerim Wrote: Thanks Fenders -- that's more or less what I'm thinking.Look at historical PEs. Sell a CC and you can yell at me later The market acts like it doesn't take two years to lock a new defense contract in. Maybe I a too optimistic but this conflict will likely be on page three by then. Yes I believe this is serious and it bothers me a lot.
On the other hand, tho -- even at this morning's price, it is barely at a P/E of 20, so the increase could stick. Especially if all the NATO countries start upping their defense spending in reaction to the new realities. And your thought about not close to the money makes good sense. The June $550s are going for $12 right now; and the $600s for $6.