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Strategies & Market Trends : Dividend investing for retirement

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To: Chris Forte who wrote (3744)	2/11/2010 3:25:03 PM
From: chowder	Read Replies (1) of 34328

Re: KO Options ...... I don't use options because I haven't studied the various strategies enough to use them and feel comfortable knowing I'm using the correct tactics. So, this may be a stupid question, but a question none the less. :o) Wouldn't the strategy you are employing with KO be better in a situation where you already owned KO and were wanting to add to the position? It seems to me, there's a chance you may not get to own it. After identifying a good long term investment, one that continues to grow their dividends, and then not owning it because price didn't come down far enough, sounds like a risk not worth taking in my opinion. Again, I don't understand option strategies and maybe I'm not looking at it correctly. If you wish to own KO in the future because it never came back down to your price level, then you lose the dividends, the lower price you could have owned it at and the compounding component of reinvesting the dividends. If you already owned a position and wanted to add to it by dollar cost averaging, then the tactic you are employing at the moment sounds like a good one. Am I making any sense? Anyone have any opinions on this?

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