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Strategies & Market Trends : Dividend investing for retirement

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To: upanddown who wrote (3705)	2/8/2010 3:13:42 PM
From: Chris Forte	Read Replies (1) of 34328

Thanks for the options insight. Very interesting. My favorite way to establish a position would go like this. Find a dividend-paying stock you like at the current price. Sell near-the-money puts about one month forward. If you get assigned, hopefully you get it above break even (strike - premium). If it stays above the strike, you pocket the premium and repeat the process the following month. By definition, getting assigned this way means you acquired the stock on weakness. If you were interested in buying McDonalds a little lower than it is now, say 400 shares, could you lay out a real time example of how you might buy MCD?

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