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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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Sun Tzu
To: Sun Tzu who wrote (44634)11/24/2021 12:02:15 PM
From: robert b furman1 Recommendation  Read Replies (1) of 97462
 
Hi Sun,

That is rule number one.

The corollary to that is if I am assigned the shares - minus the premium, it will yield a long tern dividend yield that will provide my retirement income.

I've been selling puts based on climax analysis, as it correlates well with inflated put premiums, which result in a higher than market based dividend yield, if and when assigned.

So far that has mostly resulted in few assignments and more of the higher taxed personal income as the puts expire to 00.00.

The real winners are when puts are sold at major declines. Those premiums when combined with my dividend revenue streams allow for out right purchases at those trough prices.

They do not come along that often, so I accumulate the dividends for those opportunistic declines.

You guys are so nimble with your frequent trades, I greatly value your shared knowledge here.

I'm a very slow and methodical buy and hold investor.

With that being said , there is a time to sell and a time to just outright buy.

Those are the moments where learning from you pros really helps out.

Thank you for your warning. It is always appreciated.

I'm not selling anymore puts here. In the last two weeks before as energy stocks were getting crushed, I sold some puts on KMI, which if assigned will yield 7% plus. If they get assigned my future dividend stream will cover the assignment. So I'm happy with the plan either way.

That takes the fear out of the market for me.

We all have our peculiar ways. <smile>

Bob
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