Going back to basics, new trade on AT&T Inc. , value priced company- paying a 7.35% dividend. Here is the trade:
- Sold: Ten (10) September 17, 2021 Puts
- Strike Price: $28.00
- *Premium Collected: $650.00
If I am forced to buy the 1000 shares, my entry price will be $27.35, almost a 24% discount to AT&T’s Fair Value of $36.00 per share. I feel this trade provided a fair Margin of Safety.
This could be a fun stock to own – they will be spinning off the Time Warner segment of the company over the next two years – a lot of value could be realized.
I am doing this trade to get back in the saddle after the IONS debacle – feels good getting back to basics.
*Excludes transaction costs.
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