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Investment Strategies / Falling Knives
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Author: rnam   😊 😞
Number: of 672 
Subject: Re: DG = DLTR
Date: 01/23/2025 9:21 AM
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No. of Recommendations: 7
There is definitely a lot more fear around dollar stores, than beaten down stocks in other sectors.

For DG, selling an ATM Jan 16, 2026 put can earn you an annualized ROI of almost 20% or get you an entry price of $59 or 17% below current price.

In comparison, with Devon Energy, you can earn 15% for an entry point 11% below current market.
With Comcast, you can earn 11.5% for an entry 9.5% below current market.
With Hershey you can earn 9.6% for an entry 9.3% below current market.

There is much more fear regarding the prospect of DG returning to past glory. Current holders are willing to pay very large premiums for protection from downside. Maybe writing puts is a good strategy for DG.

Jim is very experienced in options. Maybe he can chime in.
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