ZIM Integrated Shipping Services (ZIM) reported record income and better-than-expected revenue for the first quarter. Management also increased its full-year guidance.
This shows the company can pass on the increased cost of fuel and labor. It also shows it can raise prices as customers are willing to pay premium prices due to the global supply chain crisis, which worsened in April, according to the Federal Reserve.
I am recommending a new silly put trade on the stock. The chains are somewhat illiquid, creating a wide spread between the bid and the ask. Please use limit orders and work the trade to get at the “go as low as” price or above.
Current Stock Price: $64.72
Action: Sell to open the ZIM May Week Four (5/27) 55 Put
Current Option Price: $0.60-$0.75
Recommended Limit: Set your initial limit order at $0.65. You can go as low as $0.45, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, May 27
Potential Rate of Return: 1.2% in nine days, or 48% annualized, if this option expires worthless