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Technology Stocks : Semi Equipment Analysis

SOXX 296.74

+1.8%

Nov 28 4:00 PM EST

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To: Return to Sender who wrote (88501)	6/13/2022 11:31:20 AM
From: robert b furman	1 Recommendation Read Replies (1) of 95487

Hi RtS, It darn sure is ugly out there. On days like today, I look at stocks I'd like to own and sell puts on a strike price that if assigned I'll yield at least 5 percent and look for 6% more. I sold 10 January 2023 INTC puts for 1.50. If assigned the net purchase price will be $28.50. With the current dividend I'll yield 5.13%. That may not be the low, but I'll be getting paid to wait. Unless this signal the bull is over, it will usually expire to 00.00, and I keep the cash. I'm OK with either alternative. I always liked INTC and di this same approach years ago, except the strike price was $20.00. I invest for the long run and general market sell offs provide a good "add to" place to grow my dividend stream. If price drops below my net purchase price, the next round of dividends gets me more shares for the money and I grow the dividend stream faster. Its really just a very boring long term investment process. No margin. Only strong balance sheets with little debt and a dividend payout that is safe with a view on Free cash flow norms dependent on the business and their competing peers. Being able to pick up some stock at bargain prices helps keep my attitude constructive during these brutal sell offs. We wait so long for these opportunities. If it is the big bad bear, then clipping dividends and buying more stock cheap gets on through the tough times. Lord knows when younger, my margin was always a stressful thing. Done with that forever! Best of trades to you RtS! Bob

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