Back in December 2018, I was put 500 shares of Anheuser-Busch InBev (BUD). My entry price was $68.24 per share – almost a 42% discount to Anheuser-Busch InBev’s Morningstar Fair Value of $118.00 per share. The shares are trading at $84.21 per share this morning – almost an $8,000.00 profit if I hit the sell button today.
Note: I have been drinking as much InBev product possible, to help increase sales – I highly recommend Goose Island 312 Urban Wheat Ale – one of InBev’s craft brands:
Rather than selling my shares – I have decided to sell 500 Call Options instead – here is the trade:
- Sold five (5) BUD Call Options
- Strike Price: $85.00
- Expiration Date: May 17, 2019
- *Payment Collected: $1,125.00
*Excludes transaction costs.
If Bud is trading under $85.00 per share on May 17, 2019 – I will keep the 500 shares and the $1,125.00 premium. If BUD is selling for over $85.00 per share on May 17, 2019 – I will lose my 500 shares, but with a total profit of $9,505.00.
I am really getting bored with the Market right now – don’t see anything worth buying – my portfolio is still 20% Equity, 80% Bonds and Cash – waiting for something to break.
Good Luck with your trading!
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