This Networking Company is a Money Maker

For the year ended 2019 the Networking industry as we track it returned about 15%, and shares of Ubiquiti (UI) returned over 70%, besting it's peers and beating expectations on it's recent earnings report. The company is profitable, shows consistent growth and surprisingly pays a $.30 cent dividend per quarter and buys back it's stock. We like being long this company but shares are just off their recent highs of $199 hovering today around $170. Buying the stock would be risky if the market decides to retreat from it's recent record of making new highs, and we still believe there is froth in the US stock market.

We are selling the June $100 Puts on UI for $1.26, if the stock remains above $100 over the next 149 days we'll keep the premium as the Puts will erode to $0, if the stock drops below that level we are glad to buy the shares at $100 as the stock hasn't traded below that level throughout the past year and it would represent a tremendous value.