because 72 is $6 away from the closing price on Friday and I don't think it has that much downside in the next 35 days in the absence of any more negative news (headline news for example). But of course I could be wrong, and the stock could tank all the way down to 71 or worse. In which case I'm obligated to buy it at 72 if I don't close out my put contracts. I'm fine with buying at 72, less the premium I received for selling the puts.
PE is half of V and MA? On what basis?
the market always looks forward, not backward.
Have you taken into account the downward revisions in earnings for next year?
Next year's eps estimates for AXP have been cut to $5.88 but I haven't looked at the likely upward revisions for MA. On that basis, I would not call AXP cheap...yet.
why are you so sure it won't get to $67? Do you have a mathematical model to show that AXP is such a bargain at $67 that investors will buy up every available share at a price higher between 78 (today) and 67?
I sold a slug of March 20 $72 puts so obviously I don't think it will get there short term. But after March 20, well, I'm not so sure. I won't stick my neck out that far.