Yesterday, May 3rd, 2022, the Value Investment Fund sold 246.9135 PUTs on JPMorgan Chase & Co. with a strike price of $80 per share. These PUTs expire on June 16, 2023 (13 months). The Fund sold the PUTs for $2.76 each and netted $1.76 each after fees. Total realized income was $434.57 (246.9135 * $1.76/ea).
PUTs are options that act as insurance for the buyer. In effect, the buyer is buying the right to force the seller, in this case the Fund, to purchase the buyer’s shares at a preset price. The goal is minimize the buyer’s downside risk associated with owning the respective stock. In this case, the Fund has determined that JPMorgan Chase & Co.’s intrinsic value is at