Last week presented a perfect opportunity to start building a position in ADY using the buy write strategy. On Wednesday night I placed orders for shares at $14.05, sell Jan $12.50 puts for $1.50, and sell Jan $17.50 calls for $1.20. These orders were all filled Thursday as the stock went below $14 a share, reaching a low of $13.71 around lunch time, and then recovering to above the $14.40 level by the end of the day, on huge volume buying! This buy write of ADY lowered my per share price to $11.35 per share or a 20% discount.
ADY remains a great value and should see more recovery in the stock price going forward as the market begins it climb back towards the top of it's range. The huge volume buying that helped the stock recover from the $13.70 level on Thursday is a good indication that there is some big money committed to this stock at this level.
Did anyone else start or add to their position last week?
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