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Strategies & Market Trends : Option Strategies
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To: Thehammer who wrote (2036)4/19/2019 9:53:13 AM
From: robert b furman  Read Replies (1) of 2591
 
Hi Hammer,

CVX has long been a stock I've wanted to accumulate.

My game plan in the long run is to swap Cohu and Brks on a fast rise up into CVX and boost my future dividend income.

I'm guessing you've sold a May put at 120.00 for 3 something?

I have a slug of Cohu 15.00's coming due in May. If they expire to 00.00 I think I'll join you in June, on a short term sell. Their earnings are due out on 5/19/19 AH.

Here's CVX daily:

screencast.com

Both the Stochastics and Rsi are signalling a good buy point right now. I'm waiting for Macd to turn up and MO (blue line in the volume box) to reverse up. They lag and I may miss the deal.

I'm waiting mostly to see if my cash must go to Cohu. If not I'm going to work CVX hard.

I'd love to own some CVX in the 105 ish zone. $4.75 / $105.00 = 4.533 %. 4.5 % was what I was hoping to get with XOM.

It took the fast collapse of crude to get me the gift on XOM - I bot XOM at 71.09 average (3.28 / 71.09 = 4.61%. I then sold some $100.00 January 2020 puts for $6.00. If those expire to 00.00, it will bring my net cost down to 67.72. $3.28 / $67.72 = a yield of 4.84%. Hindsight says I should have bought more.

With peak driving season coming very soon (start of May), I'm not expecting a replay of another crude collapse opportunity till peak driving season is over.

I've always been able to feel comfortable if the stocks I own, drop below my entry price by the dividend amount.

In fact a revisit of 100.00 and I'll break out some reserve cash.

As a starter position, I'm looking at the 115's for $2.00 (current bid / ask is 1.86 / 2.09. $2.00 / 113.00 = .0177 / .0833 =21.24% annualized If one did that every month - which is hard to do.

Thanks for the idea.

I really like CVX even better with Anadarko being folded in. There are a lot of people where I live, that work for Anadarko. In fact I'm looking out the window at their towering office building right now (it less than 2 miles from my house.

I'm hoping the decline works a bit longer in time and I'll try to learn how to do the short term puts. Of course I'll do it on small numbers. Each put is $11,300 if assigned.

I'll try to do 115's, then 110's then 105's in a bigger lot.

I have to get some purchasing power expired and then I'll mirror your move.

Thank you for sharing the investment.

Bob
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