Pulled the trigger on the cheapest stock on my board today – so, this BUD’s for you!
I sold options on Anheuser-Busch InBev (BUD) – here are the details of the trade:
- Sold: 5 Dec 21, 2018 Puts
- Strike Price: $70.00
- *Premium Collected: $880.00
If I am forced to buy the 500 shares, my entry price will be $68.24 per share – almost a 42% discount to Anheuser-Busch InBev’s Morningstar Fair Value of $118.00 per share – providing a large Margin of Safety. Anheuser-Busch InBev just cut their dividend, that is why the stock is tanking, but it will still be paying about 2.5%. I believe there is huge upside with this stock for long term investors.
*Excludes transaction costs.
I need to start drinking Budweiser – or maybe Corona (another brand they own).
Bud Light for everyone!
https://www.youtube.com/watch?v=ejskHmQA1QE
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