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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (3709)	2/9/2010 10:13:24 AM
From: Chris Forte	Respond to of 34328

John, thanks for the great reply by running through a nice clear scenario of your put strategy. It makes a lot of sense to me - it's a great way to buy a stock you have your eye on. I've sold covered calls before but I don't think I've sold puts so this is something new. I appreciate the tips.

To: upanddown who wrote (3709)	2/11/2010 10:21:35 AM
From: Chris Forte	Read Replies (2) \| Respond to of 34328

John, I sold some puts. I'm interested in KO. It was down a bit this morning, -.15, $53.65. I sold 5 March 20 $50 put contracts at .43. That netted me $201.25. So if KO closes at or below $50 on March 20 I will own 500 shares of KO at a cost of about $49.60 per share. If it closes higher than $50 I have $200 in my pocket for my trouble. Yes? No? Maybe? I will miss a dividend though. I considered Feb 52.50 and March 52.50 but I just felt more comfy for some reason with the March 50 until I get this process more under my belt. What would you do?