Posted:
#1
I just purchased 50 contracts of the
URI Jan 20 2017 80 Call @ 15.30, for a total investment of $76,500. In my self-directed 401k.
I know this company well and despite the 'headwinds' faced, it's a cash-machine and has beaten earnings time and time again. I believe this is a level of support and really a buy of a lifetime.
For the people unfamiliar with options, 1 contract = 100 shares. I use options so that I can control 5000 shares (50 contracts) of the stock for $76,500, when it would otherwise cost (5000)(80)=$400,000 to purchase that much stock.
It's a long term option, or LEAP, so the spread is a little bit wider than normal but I think the value is there. They are the largest equipment rental company in the world. Also, I believe there may be some M&A action to add to their bottom line as they have an exorbitant amount of cash.
Also, FYI I bought these essentially 'at the money', which means that the stock was at or around $80/share and my strike price is $80/.share... (I actually bought them when the stock was around $79/share early this afternoon) I did this because I believe the $80 level is strong support for this stock. I also put a smaller amount, $5000, into a LEAP with strike price $100, but that's not important and a smaller play.
Good Luck all
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