# <center>Great results come from buying great businesses at good prices.</center>
This simple idea works wonders over the long term.  Great businesses have recognizable brand names that produce above average profit margins which they use to generate large free cash flows.  If you wait to buy this type of business at a decent price you can set yourself up for low-risk investment returns.

## Philip Morris (PM) has been a great trade so far and today it will become even better. 

If you had sold the put back in May you were assigned 100 shares of stock for every put sold.  After the recent earnings report, PM share price rallied well above your cost basis.  Now you can take advantage to earn more cash.

Philip Morris has huge 28% profit margins and pays a large 5.2% dividend.  

This trade took a bit of time to play out but patient investors are being rewarded handsomely.  Look at the chart below where the stock rose like a rocket after its earnings report. Put sellers are now up about 7% on your cost basis.

![image.png](https://ipfs.busy.org/ipfs/QmbmUokk71K37ZCKwPj9gEH9SRgo7JXBsswHBFSv16MPZa)

## Trade details:
Sell to open September 20, $90 covered calls on your Philip Morris shares for $2.20 using a limit order and earn 2.7% on your cost basis. 

At expiration if shares are above $90: you will sell your shares for $90 for a total return of 11.4% in about four months.  This is an amazing 32.8% annualized return. 

At expiration if shares are below $90: the call expires worthless and you keep your shares for potential dividend payments and additional covered call income. 

Philip Morris is a great business that's turning a corner.  Its recent earnings results and the price action of its stock demonstrate the power of the simple statement buy great businesses at a good price.

Earn more cash today.

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Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.