Option trade diary #2 – ASR

ASR this time, an insurance company from the Netherlands, one that hasn’t been on a lot of radars. Most people look towards bigger firms like NN, or Munich Re in Germany. To name just 2. For me ASR has been interesting for some time now. People always need insurance and as an insurance company ASR is doing a nice job. It’s been up in recent years due to good results and product development. Also the margins are pretty good. So is the dividend.

Recently the stock has been under pressure due too interest rate concerns and general turmoil. Which means people buy up bonds and this impact insurers , amongst others. As the market always has a bit of a knee jerk reaction, I think this stock will be recovering , and if not I am happy owning a few. So I sold a put option
for December 2019 strike price 34 euro’s. For which I received 165 euro’s.

It’s now a matter of time, either I will have too buy at 34, roll the option for another time in the future or receive the premium. Either way I will be content. Especially with the last possibility. Let’s wait and see.