Get Paid 12% To Buy AVGO At A 30% Discount – Here’s How | Trefis

Do you think AVGO stock is a good long-term bet at current levels? What about at a 30% discount at about $300 per share? If you think that is a steal and have some cash ready to go, here is a trade.

12% annualized yield at 30% margin of safety by selling Put Options.

• Sell a long-dated Put option expiring 6/17/2027, with a strike price of $300
• Collect roughly $2,680 in premium per contract (each contract represents 100 shares)
• That’s about 8.0% annualized yield on the $30,000 you’re setting aside for the possibility of buying the stock
• This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 12.0%
• And you give yourself a chance to buy AVGO stock at deep discounted price of $300

Possible Trade Outcomes: You Win Either Way

Stock Price Outcome: What It Means For You

If AVGO stays above $300. You keep the full $2,680 premium – that…