How to Get a Better Stock Price than any CEO

[] Insider buying is a great way to identify undervalued stocks in the market. But instead of chasing these stocks, consider a simple options strategy that can help you get the best price possible. [View in browser]( [View in browser]( [] [Godesburg's Haven Investment Letter]( [] [Godesburg's Haven Investment Letter]( [] How to Get a Better Stock Price than any CEO [Garrett Pic] Dear Investor, No person at a company knows the future better than the CEO. No one outside of the CEO role has better insight into the future. Not Warren Buffett. Not Cathie Wood. Not a hedge fund manager who held a meeting with company leaders. The CEO is the ultimate authority. No one knows the balance sheet better than the Chief Financial Officer (or CFO). This person knows the real value of the stock after analyzing the various numbers on the balance sheet. If the CFO believes the stock is trading at a deep discount to its future values, we’ll likely see the CFO purchase it. Executives at companies file a Form 4 document with the Securities Exchange Commission (SEC) when they buy stock with their own money. As I’ve noted, it is an incredible vote of confidence to see executives purchasing their own stock. And according to various studies, insiders like CEOs and CFOs have an incredible track record of exploiting value from their stock purchases. As a result, we commonly witness many algorithms and retail investors scoop up stock once we learn of purchasing from these executives. That said - I caution investors to avoid the temptation of just “buying” the stock at market value after the executives buy the stock. You see, the value exploited by executives is based almost entirely on the period between when they buy the stock and when the SEC announces the purchase. Let’s take a look at an example. The Insiders Scoop Up Fifth Third Bank Each morning, I examine purchases by executives and their FORM 4 filings. This morning, two purchases hit my desk. Both were for Fifth Third Bank (FITB), a regional bank with branches around the Midwest and the Southeast. [FITB]( As you can see, the CEO purchased 7,763 shares at $32.29 each on October 21, 2022. The CFO followed up with a purchase of 3,893 shares at $32.16 each on the same day. Both deals were statistically significant in their purchases above $100,000. That is typically the level of a deal I’m seeking for an idea. But notice that their entry price was much lower than when the purchases were announced on October 24. Shares closed at $34.23 on Monday. The CEO was up 6.0% at the time the filing emerged. Today, shares are up another 2.5%, adding to the gains. Many investors followed the insiders into this position. This can turn around at any moment. So, instead of chasing this trade, let me show you something else you can do to maximize your outcome on Fifth Third Bank (FITB). A Put Spread Will Do The insider purchases in positive momentum markets do provide upside for these stocks. But you know that the CEO and CFO believed their stock was a bargain, just above $32.00 per share. So, why wouldn’t you aim to exploit that value on your own? Instead of buying calls or spreads, you could sell a put spread at the entry level where the CEO and CFO bought the stock. So, you could sell the December 16, 2022, $33 put for $1.10 - which offers you a breakeven price under the CEO’s purchase price. Then, you can buy the December 16, 2022, $30 put for $0.50. That will give you a credit of $60.00 - and require you to put up a margin of $240. You aim to achieve a 25% return through December 16 on this trade. Your breakeven for FITB stock is $32.40 - right around the entry price of the CEO/CFO. Your probability of profit is 71.7%. And your annualized return would be 172% if the stock remains above the $33.00 level. If FITB moves higher, the value of the spread will decline - making this a winning trade. If FITB stays in place and remains above the $33.00 level, it will generate a winning trade. And if the stock pulls back to $32.40 or even a little less, you will have the opportunity to snap up shares around the same price where the CEO and CFO both deemed it a bargain. It’s a win… win… win… Enjoy your day, [Garrett signature] Garrett {NAME} [] Market momentum remains Green. Things are heating up toward the showdown later this afternoon. As we close the day, we’ll get earnings reports from Microsoft (MSFT) and Alphabet (GOOGL). With so much attention on the mega-cap space, we’re seeing a lot of breakouts today on clean energy, financials, and several other slumbering sectors. [] [] [] How to Get a Better Stock Price than any CEO [Garrett Pic] Dear Investor, No person at a company knows the future better than the CEO. No one outside of the CEO role has better insight into the future. Not Warren Buffett. Not Cathie Wood. Not a hedge fund manager who held a meeting with company leaders. The CEO is the ultimate authority. No one knows the balance sheet better than the Chief Financial Officer (or CFO). This person knows the real value of the stock after analyzing the various numbers on the balance sheet. If the CFO believes the stock is trading at a deep discount to its future values, we’ll likely see the CFO purchase it. Executives at companies file a Form 4 document with the Securities Exchange Commission (SEC) when they buy stock with their own money. As I’ve noted, it is an incredible vote of confidence to see executives purchasing their own stock. And according to various studies, insiders like CEOs and CFOs have an incredible track record of exploiting value from their stock purchases. As a result, we commonly witness many algorithms and retail investors scoop up stock once we learn of purchasing from these executives. That said - I caution investors to avoid the temptation of just “buying” the stock at market value after the executives buy the stock. You see, the value exploited by executives is based almost entirely on the period between when they buy the stock and when the SEC announces the purchase. Let’s take a look at an example. The Insiders Scoop Up Fifth Third Bank Each morning, I examine purchases by executives and their FORM 4 filings. This morning, two purchases hit my desk. Both were for Fifth Third Bank (FITB), a regional bank with branches around the Midwest and the Southeast. [FITB]( As you can see, the CEO purchased 7,763 shares at $32.29 each on October 21, 2022. The CFO followed up with a purchase of 3,893 shares at $32.16 each on the same day. Both deals were statistically significant in their purchases above $100,000. That is typically the level of a deal I’m seeking for an idea. But notice that their entry price was much lower than when the purchases were announced on October 24. Shares closed at $34.23 on Monday. The CEO was up 6.0% at the time the filing emerged. Today, shares are up another 2.5%, adding to the gains. Many investors followed the insiders into this position. This can turn around at any moment. So, instead of chasing this trade, let me show you something else you can do to maximize your outcome on Fifth Third Bank (FITB). A Put Spread Will Do The insider purchases in positive momentum markets do provide upside for these stocks. But you know that the CEO and CFO believed their stock was a bargain, just above $32.00 per share. So, why wouldn’t you aim to exploit that value on your own? Instead of buying calls or spreads, you could sell a put spread at the entry level where the CEO and CFO bought the stock. So, you could sell the December 16, 2022, $33 put for $1.10 - which offers you a breakeven price under the CEO’s purchase price. Then, you can buy the December 16, 2022, $30 put for $0.50. That will give you a credit of $60.00 - and require you to put up a margin of $240. You aim to achieve a 25% return through December 16 on this trade. Your breakeven for FITB stock is $32.40 - right around the entry price of the CEO/CFO. Your probability of profit is 71.7%. And your annualized return would be 172% if the stock remains above the $33.00 level. If FITB moves higher, the value of the spread will decline - making this a winning trade. If FITB stays in place and remains above the $33.00 level, it will generate a winning trade. And if the stock pulls back to $32.40 or even a little less, you will have the opportunity to snap up shares around the same price where the CEO and CFO both deemed it a bargain. It’s a win… win… win… Enjoy your day, [Garrett signature] Garrett {NAME} [] Market momentum remains Green. Things are heating up toward the showdown later this afternoon. As we close the day, we’ll get earnings reports from Microsoft (MSFT) and Alphabet (GOOGL). With so much attention on the mega-cap space, we’re seeing a lot of breakouts today on clean energy, financials, and several other slumbering sectors. [] [] [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information please visit [our disclaimer page here](. [] Sent to: {EMAIL} [UNSUBSCRIBE]( [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information please visit [our disclaimer page here](. [] Sent to: {EMAIL} [UNSUBSCRIBE](