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Strategies & Market Trends : Option Strategies
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To: Thehammer who wrote (2086)3/4/2020 12:01:31 PM
From: robert b furman  Read Replies (1) of 2591
 
HI Hammer,

My staggered XOM puts are all in the money except some I sold last week (50's).

I used to have huge gains, but they've dissolved. I suspect once spring driving comes (might be bigger if people do not opt for planes,trains,busses or cruises?) and Covid 19 settles down as weather gets warm (only 60 days for both to occur oil demand from drivers and ramping industry will skyrocket.

So much Capex has been cut/deferred, oil will have a stronger than normal seasonal rally.

The bid / ask spreads are huge. Either way I only sell puts,if I'd like the underlying stock.

This morning I sold some CVX puts out into January 21 of 2022. Took the 90's which seem to be showing some support (famous last words). I got $12.30 for them. Current dividend has been confirmed by CEO today. Future cash flow to double by 2024/ Wirth, the CEO. Net purchase price = $77.70 current dividend $5.16 / $ = yield of $77.70 = 6.64% yield. I'll take either alternative.

Both CVX ( 14.81)and XOM ( 12.5372) have had their 12 hour RSI bottom on the open of 2/27.

XOM has their investor presentation tomorrow morning - suspect similar dividend commitment and estimate of growing cash flow doubling by 2025. Should provide similar boost to stock price.

Bob
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