Options Trade – Spectra Energy Corp.

I have been following Spectra Energy Corp. (SE) for a while – they appeared on my Morningstar Stock Screener as one of only a few undervalued companies available.  SE received some short term bad news today – regarding a pipeline spill that should not effect the companies long term profitability – so I sold a cash secured put at the $35.00 strike price, well below Morningstar’s estimated SE fair value estimate of $46.00.  Received a credit of $1,000.00 – so my actual purchase price if put the stock after expenses would be a little over $34.00 – a price I am happy to pay for a stable 4% Dividend Blue Chip Pipeline Company.