High Tide: The Art Of Selling Cash-Secured Puts For Income Investing

Richard LejeuneInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryHigh Tide Inc. offers compelling value for income investors via cash-secured put strategies, given its low valuation and strong fundamentals.HITI's balance sheet is robust, with cash exceeding debt, and the company remains free cash flow positive despite aggressive store expansion.At a net purchase price of $2.34, HITI trades at only 0.38x forward revenue and 10.6x 2027 earnings, supporting a favorable risk/reward profile.Hybrid and wheel options strategies can generate high synthetic yields and capitalize on HITI's growth, brand strength, and sector volatility.This idea was discussed in more depth with members of my private investing community, Panick High Yield Report. Learn More » Selling cash secured puts is a good way for income investors to include the cannabis sector in their portfolio Morsa Images/DigitalVision via Getty Images The cannabis sector offers very few traditional high-yielding opportunities for income investors. The sector is nearly devoid of preferred stock issues, baby bonds, or high-yielding common stocks. Fortunately, income investors can use an options income strategy to create their own synthetic high-yield play.

High Tide Inc. (This article was written byRichard Lejeune7.17K FollowersFollowThe author is a former hedge fund trader now working as an independent trader, consultant and author of the Panick Value Research Report.

The Panick Report is a newsletter and alert service focused on undervalued high yield preferred stock issues, baby bonds, bonds and some undervalued micro cap equities. Sign up in the Dividends section of the Seeking Alpha Marketplace to receive exclusive subscriber articles, daily sector updates, advance drafts of public articles and more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of HITI, RILY, BTG, SNDL, AAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.