Options trading, Cash Secured Puts etc

Adyen - good opportunity? - Investing / Others - Mustachian Post Community

Alright, emailed my bank to execute writing Puts on Adyen this monday morning

  • Business is growing 15-20% per year
  • EBIT% has been creeping up to 50% over the years
  • P/E ratio of 24 but 20% of market cap is cash (zero debt)
  • Multiple on cashflow is around 20
  • Current share price around 950, I’m writing Puts with late 2029 expiration at 700 strike price with a 138 Euro premium. Exposure: 70k Euro to take the shares. Premium now: 14k Euro => which I’ll invest in a good ETF

This is a stock I’d love to own. If I get it at a discount, great. If not, also great (pocket the premium).

UBS by the way made a DCF and sum of parts analysis pointing to fair value being 1600.

LVMH up next… similar but slightly different situation, great opportunity

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