Purchased 382.336 Shares of Equity Residential
To cover my position with the PUTs I sold on Union Pacific, I decided to buy a stock that is currently dirt cheap. Equity Residential is currently at its three year low at $51.31. Including transaction fees, I’m paying $52.31 per share and purchased $20,000 worth of Equity Residential. Look at this graph:
In effect, I’m buying a long-term investment to cover the insurance I issued for Union Pacific. I did some research, the last time Equity Residential was at $51.31 was back during the first quarter of 2010, over 10 years ago.
As of today, the value investment portfolio consists of $30,000 of Equity Residential and $10,000 of Essex Property Trust. I earned $330.40 on the sale of 59 PUTs for Union Pacific. Act on Knowledge.