Sorry, it has been a long time since my last post.
The Market finally offered up some bargains yesterday – if only for one day. I sold options on Enbridge Inc. (ENB) again, since I believe the shares are deeply undervalued – thus providing a Margin of Safety. Here are the details of the trade:
- Sold: 10 Nov 16, 2018 Puts
- Strike Price: $30.00
- *Premium Collected: $550.00
If I am forced to buy the 1000 shares, my entry price will be $29.45 per share – almost a 40% discount to Enbridge’s Morningstar Fair Value of $49.00 per share. Enbridge is currently paying a 6.53% dividend – and it will be growing its business over the next two years as more pipeline capacity comes online.
*Excludes transaction costs.
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