CAE Inc. Options Strategy: Buy Stock at $30 Strike for 9% Discount
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy CAE?
Source: NASDAQ.COM
- Options Contract Analysis: The current bid for the $30 strike put option is 35 cents, and if an investor sells to open this contract, they commit to buying the stock at $30, effectively lowering their cost basis to $29.65, which represents a 9% discount from the current price of $33.06, making it attractive for potential CAE investors.
- Yield Potential Assessment: Should the put option expire worthless, it would yield a 1.17% return on cash commitment, or 1.73% annualized, referred to as YieldBoost, indicating the potential profitability of this options strategy.
- Call Option Opportunity: The $35 strike call option has a current bid of $1.25, and if an investor buys CAE stock at $33.06 and sells this call, they could achieve a total return of 9.65% if the stock is called away at expiration, highlighting the appeal of this options strategy.
- Risk and Return Analysis: The $35 strike call option has a 50% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, which could enhance their returns, with an annualized yield boost of 5.61%.
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Analyst Views on CAE
Wall Street analysts forecast CAE stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 31.380
Low
33.97
Averages
38.04
High
42.10
Current: 31.380
Low
33.97
Averages
38.04
High
42.10
About CAE
CAE Inc. is a technology company. Its segments include Civil Aviation, and Defense and Security. The Civil Aviation training segment provides comprehensive training solutions for flight, cabin, maintenance, ground personnel and air traffic controllers in commercial, business and helicopter aviation, a complete range of flight simulation training devices, ab initio pilot training and crew sourcing services, as well as airline operations digital solutions. It manages approximately 363 full-flight simulators. Its training systems include CAE Real-time Insights and Standardized Evaluations (CAE Rise), which improves training through the integration of untapped flight and simulator data-driven insights into training. The Defense and Security segment is a global training and simulation provider delivering scalable, platform-independent solutions. The Defense and Security market includes defense forces, original equipment manufacturers, government agencies and public safety organizations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CAE Reports Q3 2026 Earnings with Positive Revenue Growth
- Earnings Per Share: CAE reported a non-GAAP EPS of C$0.34 for Q3 2026, demonstrating stable profitability despite market fluctuations.
- Revenue Growth: The company achieved revenues of C$1.25 billion in the third quarter, reflecting a 2.5% year-over-year increase, driven by sustained demand in the aviation and defense sectors.
- Market Challenges: Although threats from Trump have pressured the stock price, analysts remain bullish on CAE's outlook, anticipating stronger growth potential in the future.
- Historical Performance Review: Historical earnings data for CAE indicates that the company has maintained stable revenue and profitability over recent quarters, providing confidence to investors.
See More
CAE Reports Q3 Results: Revenue Growth but Decline in Earnings
- Revenue Growth: CAE's Q3 revenue reached CAD 1.252 billion, a 2% increase from CAD 1.223 billion last year, indicating strong performance in the Defense sector despite challenges in Civil Aviation.
- Profitability Decline: Earnings per share (EPS) fell to CAD 0.34, down 36% from CAD 0.53 last year, reflecting weakness in the Civil segment and transformation-related expenses, which may dampen investor confidence.
- Debt Management Improvement: The net debt-to-adjusted EBITDA ratio stood at 2.30x, ahead of the company's target of 2.50x, indicating positive progress in financial stability and enhancing future investment capacity.
- Transformation Plan Progress: CAE is executing transformation actions, planning to divest non-core assets representing about 8% of revenue and optimizing its Civil training network, which is expected to impact revenue in the short term but enhance returns and resilience in the long run.
See More
CAE Set to Release Q3 Earnings on February 12
- Earnings Announcement: CAE is scheduled to announce its Q3 earnings on February 12 after market close, with a consensus EPS estimate of $0.22, reflecting a significant year-over-year decline of 24.1%, indicating potential challenges the company faces.
- Revenue Expectations: The consensus revenue estimate stands at $931.19 million, down 23.7% year-over-year, highlighting the softness in the civil aviation sector that may impact overall performance and necessitating attention to its future growth implications.
- Historical Performance: Over the past two years, CAE has exceeded EPS and revenue estimates 100% of the time, although recent EPS estimates have seen no upward revisions and 12 downward adjustments, reflecting a cautious market outlook on the company's future performance.
- Market Sentiment Analysis: Despite the negative impact of Trump’s threats on stock prices, analysts remain bullish on CAE, suggesting that growth potential in the defense sector may offset the weaknesses in civil aviation.
See More
CAE to Release Q3 Financial Results on February 12
- Earnings Release Schedule: CAE is set to release its third-quarter financial results on February 12, 2026, after market close, which is expected to provide critical performance data and future outlook for investors.
- Conference Call Invitation: Analysts and institutional investors are invited to a conference call on February 13, 2026, at 8:00 a.m. ET, where executives will review performance, enhancing transparency and investor confidence.
- Diverse Participation Options: The conference call will be available via live audio webcast, and participants can join by dialing 1-800-990-2777 (conference ID: 05762) or through an international link, ensuring global investor access.
- Company Background Overview: CAE is committed to delivering cutting-edge training and simulation solutions, employing approximately 13,000 people across over 40 countries, showcasing its leadership in aviation and defense while emphasizing its commitment to safety and mission readiness.
See More
CAE to Release Q3 Financial Results on February 12
- Earnings Release Schedule: CAE is set to release its third quarter financial results on February 12, 2026, after market close, which is expected to provide critical performance data and future outlook for investors.
- Conference Call Invitation: The company will hold a conference call on February 13, 2026, at 8:00 a.m. Eastern Time, inviting analysts and institutional investors to participate, during which the executive team will review performance, enhancing transparency.
- Global Participation Method: The conference call will be available via live audio webcast, and international participants can register through a specific link to join the call, ensuring that global investors have access to information and improving company communication efficiency.
- Company Background Overview: CAE employs approximately 13,000 people across 240 locations in over 40 countries, dedicated to providing high-fidelity flight simulators and training solutions, driving safety and mission readiness in the aviation and defense sectors.
See More
CAE Appoints New CFO as ATS Executive Resigns
- Executive Transition: Ryan McLeod, CFO of ATS, will resign on February 15 and join CAE as CFO on February 23, overseeing global finance functions to support the company's strategic growth and operational performance.
- Transition Support: To ensure team continuity, McLeod will closely collaborate with CAE's interim CFO Constantino Malatesta, highlighting the company's commitment to management stability during this transition.
- Future Plans: CAE plans for current CFO Sonya Branco to step down at the end of August 2024, with McLeod's appointment following a comprehensive search process, indicating the company's rigorous approach to executive selection.
- Market Reaction: CAE's stock closed at $34.05 on the NYSE, up $0.90 from the previous day, reflecting a positive market response to the new CFO appointment.
See More
CAE Reports Q3 2026 Earnings with Positive Revenue Growth
- Earnings Per Share: CAE reported a non-GAAP EPS of C$0.34 for Q3 2026, demonstrating stable profitability despite market fluctuations.
- Revenue Growth: The company achieved revenues of C$1.25 billion in the third quarter, reflecting a 2.5% year-over-year increase, driven by sustained demand in the aviation and defense sectors.
- Market Challenges: Although threats from Trump have pressured the stock price, analysts remain bullish on CAE's outlook, anticipating stronger growth potential in the future.
- Historical Performance Review: Historical earnings data for CAE indicates that the company has maintained stable revenue and profitability over recent quarters, providing confidence to investors.
See More
CAE Reports Q3 Results: Revenue Growth but Decline in Earnings
- Revenue Growth: CAE's Q3 revenue reached CAD 1.252 billion, a 2% increase from CAD 1.223 billion last year, indicating strong performance in the Defense sector despite challenges in Civil Aviation.
- Profitability Decline: Earnings per share (EPS) fell to CAD 0.34, down 36% from CAD 0.53 last year, reflecting weakness in the Civil segment and transformation-related expenses, which may dampen investor confidence.
- Debt Management Improvement: The net debt-to-adjusted EBITDA ratio stood at 2.30x, ahead of the company's target of 2.50x, indicating positive progress in financial stability and enhancing future investment capacity.
- Transformation Plan Progress: CAE is executing transformation actions, planning to divest non-core assets representing about 8% of revenue and optimizing its Civil training network, which is expected to impact revenue in the short term but enhance returns and resilience in the long run.
See More
CAE Set to Release Q3 Earnings on February 12
- Earnings Announcement: CAE is scheduled to announce its Q3 earnings on February 12 after market close, with a consensus EPS estimate of $0.22, reflecting a significant year-over-year decline of 24.1%, indicating potential challenges the company faces.
- Revenue Expectations: The consensus revenue estimate stands at $931.19 million, down 23.7% year-over-year, highlighting the softness in the civil aviation sector that may impact overall performance and necessitating attention to its future growth implications.
- Historical Performance: Over the past two years, CAE has exceeded EPS and revenue estimates 100% of the time, although recent EPS estimates have seen no upward revisions and 12 downward adjustments, reflecting a cautious market outlook on the company's future performance.
- Market Sentiment Analysis: Despite the negative impact of Trump’s threats on stock prices, analysts remain bullish on CAE, suggesting that growth potential in the defense sector may offset the weaknesses in civil aviation.
See More
CAE to Release Q3 Financial Results on February 12
- Earnings Release Schedule: CAE is set to release its third-quarter financial results on February 12, 2026, after market close, which is expected to provide critical performance data and future outlook for investors.
- Conference Call Invitation: Analysts and institutional investors are invited to a conference call on February 13, 2026, at 8:00 a.m. ET, where executives will review performance, enhancing transparency and investor confidence.
- Diverse Participation Options: The conference call will be available via live audio webcast, and participants can join by dialing 1-800-990-2777 (conference ID: 05762) or through an international link, ensuring global investor access.
- Company Background Overview: CAE is committed to delivering cutting-edge training and simulation solutions, employing approximately 13,000 people across over 40 countries, showcasing its leadership in aviation and defense while emphasizing its commitment to safety and mission readiness.
See More
CAE to Release Q3 Financial Results on February 12
- Earnings Release Schedule: CAE is set to release its third quarter financial results on February 12, 2026, after market close, which is expected to provide critical performance data and future outlook for investors.
- Conference Call Invitation: The company will hold a conference call on February 13, 2026, at 8:00 a.m. Eastern Time, inviting analysts and institutional investors to participate, during which the executive team will review performance, enhancing transparency.
- Global Participation Method: The conference call will be available via live audio webcast, and international participants can register through a specific link to join the call, ensuring that global investors have access to information and improving company communication efficiency.
- Company Background Overview: CAE employs approximately 13,000 people across 240 locations in over 40 countries, dedicated to providing high-fidelity flight simulators and training solutions, driving safety and mission readiness in the aviation and defense sectors.
See More
CAE Appoints New CFO as ATS Executive Resigns
- Executive Transition: Ryan McLeod, CFO of ATS, will resign on February 15 and join CAE as CFO on February 23, overseeing global finance functions to support the company's strategic growth and operational performance.
- Transition Support: To ensure team continuity, McLeod will closely collaborate with CAE's interim CFO Constantino Malatesta, highlighting the company's commitment to management stability during this transition.
- Future Plans: CAE plans for current CFO Sonya Branco to step down at the end of August 2024, with McLeod's appointment following a comprehensive search process, indicating the company's rigorous approach to executive selection.
- Market Reaction: CAE's stock closed at $34.05 on the NYSE, up $0.90 from the previous day, reflecting a positive market response to the new CFO appointment.
See More
