Posts  / WU  / #POST-244092
REDDIT

$WU: Value Trap, or Deep Value Cash Cow (With A Twist)?

# What some see as a value trap I believe is a wealth of opportunities.

Along with this cash 🐄 having an attractive dividend yield, you can collect premiums by selling covered calls (CCs). After a \~17.3% drop yesterday, a huge overreaction to the earnings report IMO, $WU is a prime candidate for running the wheel or some type of options strategy, while holding for the dividend, re-rate, & potential big move.

With $WU, I didn't want to wait for assignment so I loaded up on shares as it dipped. I don't like the idea of selling my dividend holdings, but I've come to terms with the idea of overloading a stock that I like & selling CCs only on a portion of the position, trading around a core.

Also, [$WU has over 132% institutional ownership](https://fintel.io/so/us/wu) & [the short data (shares available to short dwindling & Finra-exempt short volume skyrocketing)](https://fintel.io/ss/us/wu) leads me to believe that $WU could be gearing up for a $GME-type move\*...

What do you think? Let me know your comments, questions, and/or concerns, anything really, in the comments & let's have a conversation! 🤙

\*While the cost to borrow is only .5%, those shorting the stock are on the hook for a hefty dividend payout if they hold through the ex-date...