I believe PM is fairly valued currently and I decided to sell a put this morning hoping to lower my cost basis.
I sold 1 Sept 21 '13 $85 Put @ 4.23. I collected $423 in premiums. If assigned I'd own 100 shares of PM at a cost of $80.77 before commissions. My current cost basis is around $86 so this would help me average down on shares.
Hrmm...I might have to save up a bit more cash to be able to sell a PM put. Getting a low $80's cost basis sure would be nice.
ReplyDeleteHey PIP.
DeleteThe market is on such a tear that I will keep selling more puts on positions I want to add to. I agree low 80's for PM sounds good, 100 shares is a lot to buy at once though. Thanks for stopping by.