Dow Inc (DOW) popped up on my Cash Secured Put screen a few weeks ago, so I have been monitoring it – waiting for some support. It crashed again yesterday after announcing earnings but solidified today on strong volume when the market flow was very negative – took that as a good sign.
I made the following trade:
- Sold: Ten (10) Feb 21, 2025 Puts at $0.56
- Strike Price: $38.00
- *Premium Collected: $560.00
If I am put the shares on February 21st, 2025, I will collect the first $700.00 dividend a few days later. The stock looks ridiculously cheap trading at $39.05 (Morningstar has a Fair Value of $65.00 and StockRover has a Fair Value of $58.00).
*Excludes transaction costs.
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