Naked Puts: MasterCard (MA)
Finally, we have Mastercard (MA). I was excited by MA stock’s recent earnings miss, because it had becoming an expensive equity, and I’d love to own MA stock since it is part of an oligopoly.
MA stock is presently 10% off its 52-week high. It’s hard to believe this is still a growth stock, but analysts sure think it is, projecting 17% annualized growth. MA stock is at $76.19. You can sell the March $76 for $2.17, generating a 2.8% return, or 23% annualized, with a 19-cent margin of error. Sell two contracts for $434, and that puts you at $1,023 for all three plays.
As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets @ichabodscranium.