The Best way to think about ALA1. Definitely not through the rear window.
2. Assume you have $100,000 in cash today - right now. What to do with it.
3. If I buy 100000 worth of ALA today at 18.45 what will my return be by January 2021 which is about 16 months from now.
I should earn minimially .08 x 16 x 5420 = $6937.6
I should be able to add conservatively 2% though selling various options so say, $2000
We should realize at least a SP of $23 within 16 months on a utility or $4.55 X 5420 = 24,661
In total I contemplate here earning - $33,598.60 or 33.6 % on my $100,000.
So lets deduct $5420 becasue I am out by $1 on the share price an dflet's subtract another $1000 for various trading costs. Therefore my return is reduced to $27,178.60 or 27.18 % on my $100,000 - Prorated this amount which I think is conservative equates to 20.38% fo rone year - on a utility stock ( plus kickers.) Do you have a better idea at this point today in th emarket with the same level of risk.. Buy to 19.5 is my advice... GL and look forward - not back...