It is hard to find value in this market – but I keep on trying. I made a trade for GlaxoSmithKline PLC today – the stock was lower after going Ex-dividend. I have been tracking it for a while – hoping to procure shares for under $34.00 per share – and today I was able to sell some puts that put me in position to do so – here is the trade I made:
- Sold: Ten (10) March 19, 2021 Puts
- Strike Price: $34.00
- *Premium Collected: $500.00
If I am forced to buy the 1000 shares, my entry price will be approx. $33.50 per share – over a 30% discount to Glaxo’s Fair Value of $48.00 per share – providing a comfortable Margin of Safety. Glaxo also pays an extremely attractive 5.87% dividend.
*Excludes transaction costs.
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