Back from our Vacation in Utah:
I sold Puts Yesterday on Spectra Energy Partners (SEP) – another Pipeline company selling at a huge discount to fair value. Probably not smart doubling up in the same industry as my Enbridge trade that expires in two weeks, but this is where I am finding value:
- Sold: 10 May 18, 2018 Puts
- Strike Price: $30.00
- *Premium Collected: $660.00
If I am forced to buy the 1000 shares, my entry price will be $29.35 per share – almost a 39% discount to Spectra’s Morningstar Fair Value. Spectra is currently paying an 8.62% dividend!
*Excludes transaction costs.
Update 4/9/2018: I closed my Enbridge trade today when the stock spiked today – (sold 10 puts for .85 and bought them back for .15) Total Profit: $700.00.
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