Current earnings at $9ish are perhaps a little above trend, and if they slide a bit coming off that peak it might hit the price a bit more,but I certainly expect EPS to average over $6 in the next few years.At 5x trend earnings it can dip in price for a while and I won't bail out.It's my 3rd biggest position now.I tend to keep "big four" and the dozen dwarfs.I looked at the earnings trend today and put $4 down as a "safe looking" figure for sustainable EPS. I used that (plus the safe looking balance sheet) to come up with an easily justifiable value of $50+.I had previously written some Jan 2014 Strike 22 Puts for a premium of $5.10.Today I wrote some more Jan 2014 Strike 30 Puts for a premium of $7.25. If put to me, a net cost of entry of $22.75 should have a satisfactory outcome if the value is conservatively over $50.My total capital committed to STX is still less than my typical position, but I will probably write some more puts soon - maybe if we get a big down day.On another note, I'm thinking of transferring some more EUR savings to my USD funds to take advantage of the recent runup in EUR/USD which I am assuming is something rather temporary.StevnFool
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