ENS Overview

Global Supply Chain Changes: The global supply chain is expected to undergo significant changes by 2026 due to geopolitical tensions, rising costs, and a shift towards domestic manufacturing and technological advancements.

Caterpillar Inc.: Caterpillar is diversifying its supply chain by building a flexible network of suppliers and expanding its U.S. operations, which has led to a 54.6% stock surge over the past year.

EnerSys: EnerSys is realigning its manufacturing by closing its Mexican plant and shifting production to Kentucky, focusing on supplier diversification and sustainability, resulting in a 56.2% increase in stock value.

Honeywell International Inc.: Honeywell is reducing reliance on single suppliers and regions by implementing dual-sourcing strategies and offering financial support to suppliers, although its stock has seen a 13.2% decline over the past year.

Put Contract Overview: The $140.00 put contract has a bid of $5.60, allowing investors to buy shares at $140.00 while collecting a premium, effectively lowering the cost basis to $134.40, which is a 3% discount from the current price of $143.75.

Potential Outcomes for Put Contract: There is a 58% chance that the put contract will expire worthless, yielding a 4.00% return on cash commitment, or 22.81% annualized, referred to as YieldBoost.

Call Contract Overview: The $145.00 call contract has a bid of $6.00, and if shares are purchased at $143.75 and the call is sold, it could yield a total return of 5.04% if the stock is called away by February 2026.

Potential Outcomes for Call Contract: With a 51% chance of expiring worthless, the call contract could provide a 4.17% additional return, or 23.80% annualized, also known as YieldBoost, while both put and call contracts have an implied volatility of approximately 37%.