Peter Lynch Portfolio 29 – Trade Alert
We added a new option position in our Put Writing Portfolio
Verizon (VZ) is known and used by many of our readers. The stock is now reasonably priced at $46.90 while offering a 4.69% yield.
Verizon is not much of a trading vehicle, but it does offer nice premium for selling the Jan. 2017, $45 put @ $6.00 per share. The best case scenario would leave us keeping 100% of the $600 put premium received without having to buy VZ shares at all.
The worst case would be forced purchase of 100 shares at a net cost of $39 per share (the $45 strike price less the $6 put premium).
That ‘if put’ price is dollars below where any Verizon shares have changed hands since early in 2012.
Disclosure: Short VZ Jan. 2017, $45 puts Continue Reading »