Options Trade – U.S. Bancorp (USB)

I rolled my Cash Secured Put trade in U.S. Bancorp (USB) even though I still don’t love this trade. Had to make a decision on what to do by Friday, so I did a new review of the company. When I scanned for the following on Morningstar – only one company comes up – U. S. Bancorp:

Here is the trade:

• Rolled: Ten (10) May 19, 2023 Puts to June 16, 2023 Puts at $1.12
• Strike Price: $30.00
• *Additional Premium Collected: $1,120.00

If I am forced to buy the 1000 shares, my entry price for USB would now be *$28.40 (which is over 46% lower than Morningstar’s current $53.00 intrinsic value estimate). USB also pays a 6.69% dividend, that I would start collecting in late June 2023 if I am put the shares.

*Excludes transaction costs.