NOW is an investment opportunity; its valuation at 15.8x future adjusted earnings vs 38x historical average makes it attractive to own.

The second example. "Service Now". This is definitely not your typical value stock because it is a high-growth stock. Extremely high growth . This is a vital company for information technology infrastructure .

They have been growing their revenues at levels that very few companies have achieved in the past, to the point that they are now quite large, and this stock, which is crucial to IT infrastructure and AI application, has been sold off due to concerns that software will be significantly disrupted by AI.

We believe this has actually created an opportunity. This stock reached a 52-week high of $211. When we sold the put option, it was trading at a price slightly above $80. What we did was sell a put option at $70 on ServiceNow.

We received a premium of $5.45 per share . That's $545 in total. This option expires in November. That is, after 199 days, which is a little more than half a year. Again, if the stock is above 70 at expiry, you will achieve 8.4% at maximum risk, which equates to 15.5% annually.

Good. This is a great return. As I mentioned before, we usually target double-digit returns. In the worst-case scenario, we end up owning ServiceNow, a stock

Again, if the stock is above 70 at expiry, you will achieve 8.4% at maximum risk, which equates to 15.5% annually. Good. This is a great return. As I mentioned before, we usually target double- digit returns.

In the worst-case scenario, we end up owning ServiceNow, a stock with impressive future growth prospects at 15.8 times future adjusted earnings versus their historical average of 38 times over the past five years.

This is the level at which they were trading. I mean, this, you know, was a very attractive stock. So, we are very comfortable having it there.

As you know, it's adjusted earnings, so that includes stock-based compensation. But these are the same standards. That's 15.8 versus 38 times adjusted earnings. So, this is an example of how to take advantage of that.

And if people don't know this company, it really defines the category in terms of organizational workflow and IT service management . It has operating margins in the mid-thirties and generates a lot of free cash flow.

It is used by the vast majority of Fortune 500 companies.