Buying Coty Inc.: Shares Are Attractively Priced
Summary
- My history with Coty Inc. demonstrates the risk reducing, yield enhancing potential of short put options.
- I think the shares are trading at reasonable levels, in spite of the fact that the company has turned around nicely.
- For those nervous about buying at current prices, I recommend a short put that yields about 11% for eight months of time.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of COTY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'll be buying a few more shares, and I just sold 10 of the puts described here for $.96 each.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.