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Strategies & Market Trends : Option Strategies

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John Pitera
To: robert b furman who wrote (1687)6/27/2016 11:29:53 AM
From: robert b furman1 Recommendation  Read Replies (2) of 2591
 
ON days like today the put premiums soar on almost all stocks.

So pick what stock you'd love to buy at below market prices and then collect the money - be fully aware that you'll most likely have to keep the money.

But if not be sure the dividend yield will satisfy your allocation of cash going to ownership of the stock.

These are good days to use up your cash!!

I've sold 30 puts on Cohu 10's today for $1.00. January 2017 expiration.

The net price would be $9.00 and a dividend yield of 2.67%

I've owned this stock for decades in and out often.

Their earnings will be out July 28th - they guided 10 million over last quarter - should be a very good earnings report and hopefully some more good guidance.

I have no quams about owning Cohu at $9.00 - it will be easily sold in the $12 -$13 range sometime in 2017.

Also watching the collapse of CY - earning due on July 21st - down .91 cents 9.01 % today.

Cy pays a 44 cent dividend.

Bob
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