Options Trade – Anheuser-Busch InBev (BUD)

Big reversal in the Market today – so I decided to put a cash secured put trade in on Anheuser-Busch InBev (BUD) – here are the details of the trade:

• Sold: 5 December 17, 2021 Puts
• Strike Price: $54.00
• *Premium Collected: $565.00

If I am forced to buy the 500 shares, my entry price will be about $52.87 per share – over a 40% discount to BUD’s Morningstar Fair Value of $90.00 per share – providing a comfortable Margin of Safety.  BUD pays a 2.1% dividend – not great but I will take it.

I will regret this a little if the market keeps tanking, but that’s life!

Here is my favorite Bud Light Ad:

*Excludes transaction costs.