The Shares Researcher

In June 2021, this blog mentioned the possibility to sell put options – for example the Jan23 2P @$0.18 per option (or 18$ per option contract) – on Gamestop as underlying. After a bit less than one year, the prices of the options above have come down significantly. Though the position could still be kept open, it seems prudent to close the trade early and buy back the options sold @$0.18 per option for only @$0.06 per option. This results in a profit of $0.12 per option for only delivering margin! Current Price Jan23 2P @$0.06 per option (or $6 per option contract)

Intro Fuchs Petrolub develops, produces and distributes lubricants and related specialties. The product program comprises more than 10,000 products and the company has more than 100,000 customers worldwide. Founded in 1931 as a family business in Germany, the company employs almost 6,000 employees in 50 countries today and is the world's largest provider among the independent lubricant manufacturers. Fuchs has two share classes: ordinary and preference shares. The preference share enjoys higher trading liquidity and some advantages regarding the dividend. The Fuchs family still owns 55% of the business through the ordinary shares with voting rights. In the following, we focus on the less liquid ordinary shares (yes, you got it, more bang for your buck!).   Valuation In 2021, Fuchs showed an increase of revenues of 21% to €2.9bn and a net profit of approx. €250m. Compared with the current market cap of around €3.6bn, the P/E stands at around 14x. Due to geopolitical tens...