On June 14, 2022, the Value Investment Fund purchased 77.7000 shares of Essex Property Trust at $256.40 per share. Adding the $1 per share transaction fee, a total of $20,000 was invested into this security.
In addition, the Fund sold a PUT option for 100 shares at $9.90 netting $8.90 per share. The strike price is $240 per share with an expiration date of October 21, 2022.
The underlying justification is as follows:
1) The intrinsic value for Essex Property Trust is greater than $280 per share;
2) This is a Real Estate Investment Trust (REIT) with significant tax advantages;
3) On June 30th, a $2.20 dividend per share will be issued;
4) REITs’ are solid operations.
Total netted from the sale of PUTs equals $890. With this sale, the Fund has two option contracts on Essex Property Trust, both expiring in October. One contract is for $260 per share and this contract at $240 per share. Act on Knowledge.
© 2022, David J Hoare MSA. All rights reserved.
