So, I’m doing a dive into Smith & Wesson Brands tonight and after doing some math I have an options move that seems to make sense.

Info: SWBI – Smith & Wesson Brands

Stock Price is currently at $14.11 after dropping nearly 1% today.  It’s up almost 20% in the last month going from $12 to $14.  In the last 6 months it has gone from a low of $8 to the high of $14 (up 50%) which is roughly the same percent for the year.  Over the last 5 years the price is down 25%.

In 2020, SWBI introduced a dividend and has continued issuing and increasing since.  Currently the Forward Dividend Yield is 3.69% which is pretty healthy.  The way I see it is that the company has committed to shareholders a strong dividend and has delivered.  The stock price going down over the last years is a sign that the dividend may be cutting deep but the company continues to stick to it.  When reviewing the shares I see an increasing amount of company stock being set aside for the company – I like that.

Overall, I want to buy SWBI stock.  In my point of view it looks attractive.  I see potential for future growth in the space that the company will benefit from and a company that is paying out to shareholders and employees.

Plan: Options Then Purchase

So, I see the March 20, 2026 option attractive.  It was last purchased for $1.30 implying the stock will at least reach $14.30 to be valuable minus any fees involved.

Today is March 11, 2026 so I think I can buy this contract and aim to hopefully exercise it before the ex-dividend date to additionally take advantage of the dividend.  I’m not sure I’ll get in early enough.  Does that mean I have to exercise by the 19th, the 18th, earlier, I don’t know for sure but I think exercising by the 18th is a maybe for the dividend.  So…. assuming the exercise and get the .13 dividend for the contract of 100 shares then my overall costs goes down .13 per share.  This is kind of big in my view as it implies that I only need the share price to rise to $14.17 to break even.  Considering the current price of $14.11 today I’m willing to bet on the stock going up .06 cents in the near future to fully break even.

Now that the math seems to all work out it is time to figure out how many contracts to buy.  We’re aiming to exercise some or all but that can vary.  I usually like to have 1000 shares of a stock.  If it goes up a penny then that’s $10.  I like being able to do easy math when seeing my portfolio.  I like to see my pennies turn into dollars and having 1000+ shares feels that way.  Goes the over way too sometimes 🙁

Anyway, assuming 10 contracts with the plan of exercising to have 1000 shares…ex

10 contracts * $1.30 per contract (SWBI Mar 20 ’26 $13 Call).  assuming .50 fee/contract the cost is $1305.14

When exercised I would need to fork over $13 per share by 1000, $13,000.  I don’t need this cash now but if I plan to exercise then the cash certainly will need to be free and clear in my account when I exercise the contracts.  Keep in mind the the extra goal is the get the dividend so special action may be needed to exercise early (before end of day on Mar 20) because the ex-dividend date is March 19.  This may take a phone call to a broker on March 18th as mentioned above and that mean the cash needs to be free and clear to use prior to that call, as in, cash better be on the way Monday.

So, my expected total cost to do this the way is $13,000 + $1305.14 = 14305.14, or, and this is big, $14.305 per share.

In a perfect world, I do this the way I plan, and get a dividend for 1000 shares soon totaling $130.  Or, as detailed above, taking initial per share cost down .13 to $14.17

Full Disclosure

Yes, the information in the article is True now, with the exception of possible typos, and only now as this article be being written before publishing at 4am eastern time on March 11, 2026.

Yes, this articles is a blog about me personally having an idea to make money.  Yes, I like the stock currently as stated above which is why i intend to purchase it.

No, I am not any type of financial advisor, wizard, or licensed trader.  If you do what I do and lose money then, No, you are responsible, not me.  It’s up to you to read, make your own decisions, and risk your own money, and have your own gains or loses.

If you make money doing what I write about then, Yes, you can donate to me but you are not obligated to do so.