Shares
Hold
Price is 16% above our fair value of $11.18 (range $7.38–$17.66, 4 of 4 models).
How we value it ›Prices as of 2:48 PM ET, Sep 17. Check the live quote before you send an order.
The put
Skip
Skip the put. The money looks good, but KD swings more than it pays. Want KD? Buy shares.
If it goes against you: you buy 100 shares at $12, which after the $32 you keep works out to $11.68 a share. Below $11.68 you are down on the trade. From that day the shares take above is the one that applies.
The order, if you sell it anyway
You get$32 (limit about $0.32)
If it fallsBuy 100 shares at $12
Cash to hold$1,200
Close earlyBuy back at about $0.32 ($32)
Chance you buy the sharesabout 26 in 100
ContractKD Oct 16 $12 put
ActionSell to open
In your broker app: open the stock → Trade → Options → Sell to open → pick the contract shown here.
Why skip
The put: Oct 16, $12 strike, 29 days out. Pays $32. Roughly a 26-in-100 chance you end up buying the shares.
On paper: 34% a year. That number assumes KD keeps moving like it did the past two years. Take that away and it is -40% a year. That is why we say skip.
Next earnings Nov 3, after this put ends. We never sell a put across a report.