Carrier Global Stock Offers Solid Entry Point for Options Bulls

Year-to-date, CARR remains up roughly 49%

Sep 14, 2021 at 10:33 AM
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Shares of HVAC name Carrier Global Corp (NYSE:CARR) have pulled back slightly from their all-time highs just shy of $60, as well as the $50 billion market-cap and 50% year-to-date mark. This dip, combined with the stock’s 49% gain for 2021, makes now a prime entry point for bulls to bet big on CARR.
 
In late July, Carrier Global posted a revenue and earnings beat while raising its full-year guidance. A share repurchase program that was also authorized can serve as a potential tailwind for the equity.

 
Analysts are split on CARR, leaving ample room for upgrades moving forward. Heading into Friday’s trading, 50% of the 14 covering brokerages carried a tepid "hold" recommendation.
 
Lastly, Carrier Global stock premiums can be had for a bargain at the moment. This is per the security's Schaeffer's Volatility Index (SVI) of 26%, which sits higher than just 16% of readings from the past 12 months. Our recommended January 2022 call has a leverage ratio of 7.2, and will double in value on a 13.8% rise in the underlying security.


Subscribers to Schaeffer's Weekend Trader options recommendation service received this CARR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

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