The Market and Anheuser-Busch InBev (BUD) were up again this morning, so I sold some call options on my holdings. Here are the details of the trade:
- Sold: 5 October 16, 2020 Calls
- Strike Price: $65.00
- *Premium Collected: $660.00
If I am forced to sell the 500 shares I own, my original entry price was $66.02 per share – so, factoring in the $283.45 dividend I received in July 2020, that brings me to a whopping $150.00 profit. Considering Anheuser-Busch InBev’s current Morningstar Fair Value of $96.00 per share – you might ask me why am I making this trade?
Mainly because the S&P 500’s P/E multiple just broke above the all-time highs from the dotcom bubble. If BUD is stuck in this range during the current Euphoria, I don’t see it going up much more in the short term.
Note: Since I made the trade – Market’s have been in free fall. Did not plan it that way, wish I had bought some SPY Puts instead!
*Excludes transaction costs.
Leave a Reply