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


To: upanddown who wrote (3748)2/12/2010 2:50:27 PM
From: Chris Forte  Respond to of 34328
 
John, thanks again for another clean and concise explanation on options - very helpful! This board is amazing.

So when using this put strategy...

*Start with a company you would like to own at the current price or a slightly lower price
*It's best to sell a put on a downward weak move in the stock's price
*Take into consideration the timing of the dividend
*Keep in mind the percentage of your proceeds paid in commissions. 3% or less is ideal.
*Sell near-the-money puts about one month forward.
*If the stock rallies sell deep-in the money LEAPS at least one year forward.