[caption id="attachment_637" align="aligncenter" width="500" caption="Frontline Ltd."][/caption]
Bullish position by shorting puts here. I am using a NOV options because I want to keep this for the short term. I would like to unload bad positions later on and scale into FRO shares since I think it's worth holding for the long term. Why? 35% dividend yield! I doubt the dividend can maintain at this level in the future, but even at half of current dividend, it's still a decent buy at this point.
Upside: Max pain at \$45 for Nov. Price-volume looks good, like we tested 20 dma \$32.2 level just now on low volume. Stock looks to be in uptrend.
Downside: Broke 20 dma at about \$32.2 yesterday. Still at critical level around \$32. Could just as well break down from here.
Bottom line: Simply a good risk/reward ratio for me to take a position here. The chance of us moving up here in the broad market is better than if we go down. I intend to hold this until at least Monday. Mental support just below support.