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Becton, Dickinson and Company Message Board

  • catalite catalite Mar 20, 2012 4:22 PM Flag

    Selling Some May 19 Puts

    Becton Dickinson (BDX) is a major global medical technology company that provides devices, instruments, and reagents used by healthcare institutions. The company consistently grows earnings year after year and has a long history of regular dividend hikes. The stock currently yields 2.3%. While the company represents a conservative income play, a higher income may be found by selling the May 19, 2012 75 strike puts, currently bid at $1.1. Every contract sold puts $110 in your pocket. Should the stock close under 75 on May 19, 2012, you would own 100 shares for every contract sold and your cost basis would be 73.9, a few bucks off the panic market low of 69.59 set on October 2011. If you end up owning shares in this conservative company, you can easily sell calls on it to generate some more income and lower your cost basis even further.

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