BLNK Hedged Options Strategy

٢٩ نوفمبر ٢٠٢٢

EVs and infrastructure-related businesses such are "charging" ahead. Blink, having experienced a bit of a downturn with other EV and EV-economy companies, still garnered buy/hold/maintain ratings from analysts. With a market cap of 561M, the company offers residential and commercial EV charging equipment, hardware, and software on its cloud-based Blink Network that enables the remote management of charging stations and gives drivers station information. Blink also has partnered with different destinations such as attractions, airports, transportation hubs, schools and healthcare facilities, hotels, apartment buildings, parks, religious institutions, retailers, stadiums, supermarkets, and office locations. As of 2022, it has ~30,000 charging ports and its revenue of $9.8 million in Q1 was 339% of the same quarter last year -- note that government grants and subsidies are a main source of funding for EV charging companies, while other companies may feel more QT stress.

With a one-year target price of $17-$25 and hinting at consolidation, here's a strategy to make up to 20% while allowing room to safely fall up to 78% before losing any money.

Buy 2 $13 Calls
Sell 2 $15 Calls
Sell 7 $3 Puts
All expiring 1/19/24

Capital requirement for this strategy: $2078