As documented in previous posts, I was put 500 shares of Anheuser-Busch InBev (BUD) back in December 2018. 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. I sold Calls on these holdings in early April 2019 and collected *$1,125.00 in premium – these calls have expired, so my current holding price is $65.99 per share.
The stock is selling for over $90.00 per share today – I could cash in with a *$12,005.00 profit. Rather than selling my shares – I have decided to sell another 5 Call Options (one call option covers 100 shares) – here is the trade:
- Sold five (5) BUD Call Options
- Strike Price: $92.00
- Expiration Date: July 26, 2019
- *Payment Collected: $1,000.00
If Bud is trading under $92.00 per share on July 26, 2019 – I will keep the 500 shares and the *$1,000.00 premium. If BUD is selling for over $92.00 per share on July 26, 2019 – I will lose my 500 shares, but with a total profit of *$14,005.00.
I think I am done for the day – enjoy your week end!
*Excludes transaction costs.
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