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Strategies & Market Trends : Option Strategies

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To: robert b furman who wrote (1903)2/6/2018 1:21:10 AM
From: Thehammer  Read Replies (1) of 2591
 
Hi Robert,

I love dividends as well. The majority of my investments would be considered DGI. I have a pretty good mix and some have higher yields than others. With some of the stocks that I have used for put writing, I made a lot more off the put premiums than I would have earned from dividends. However, in truth I would have done even better if I just bought the stocks (in some cases).

Lately, I have been writing more covered calls than puts, but generally do better with the puts. I have or had positions in all 3 securities you mentioned. Currently short some puts on MMP although not in IRA. I wouldn't mind seeing some of the great ones like MMM or JNJ move into a better buying range. However they seldom do and often the option premiums aren't that great. Some stocks like BA, PH or CMI usually have healthy premiums that go along with their cyclical nature.

I have never been very good at market timing but park money in higher yielding BDCs or CEFS and liquidate it when I want to write more puts or but something with growth potential. Now if MM rates were higher...
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