Taking advantage of the Post-Election Pop in Anheuser-Busch InBev (BUD) shares, I sold call options on my holdings again to get my per share price down. Here are the details of the trade:
- Sold: 5 December 18, 2020 Calls
- Strike Price: $60.00
- *Premium Collected: $580.00
My current basis price is $64.13 per share, so if I am forced to sell the 500 shares I own, factoring in the $580.00 premium I am collecting – that will bring my cost basis down to approx. $63.00 per share. Anheuser-Busch InBev’s current Morningstar Fair Value is $96.00 per share – so I am taking a risk selling these Calls at a Strike Price of $60.00 – but if I lose the shares, I can factor the small loss into my year-end Tax Loss selling.
*Excludes transaction costs.
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