I'm back in APH...sort ofI think APH has gotten too beat up of late. Yesterday I sold 16,000 shares worth of naked puts with an $8 strike collecting premium of $25,000 with an October 2018 expiry. My thoughts on this are as follows:
1. I'm thinking that $8 a share is a great entry point to get in on APH and am happy to buy the shares at $8 if I get exercised;
2. I think it is more likely that APH's shares rise as we head into the end of Prohibition. If they rise I plan to buy out the puts and probably re-sell for more premium at a higher share price;
3. I am thinking of doing this strategy with a couple of the other top players.
I have always stated that I think APH is a well run company, but have been critical of management for not being aggressive enough in their build out strategies and M&A work. That said I think owning this company with its current market cap is a very good value and I'd be happy to own these shares if it tanks down further. And I'm happy to collect Option premium in the meantime.