Options Trade – Ventas Inc (VTR)

Made another trade for a Health Care REIT on Friday – with the sudden rise in interest rates, Real Estate and REIT’s in particular are getting killed. I already own Sabra Health Care REIT Inc (SBRA) – which pays out a dividend of 9.58% and has held up nicely during the market sell-off. I am trying to add a higher quality Health Care REIT like Ventas Inc. (VTR) to my income portfolio, so I made the following trade:

  • Sold: 10 November 18, 2022 Puts
  • Strike Price: $32.50
  • *Premium Collected: $700.00

If I am forced to buy the 1000 shares, my entry price will be about $31.80 per share – over a 54% discount to VTRs Morningstar Fair Value of $69.00 per share – providing a very comfortable Margin of Safety.  Ventas pays a 4.77% dividend – not as good as SBRA’s dividend, but I feel they have a higher quality asset base – looking at this as a long term holding.

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