Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (24572)	7/8/2016 10:43:12 AM
From: robert b furman	Read Replies (1) \| Respond to of 41490

HI ski, Yes I agree with that. Sell puts when put call gets over 1.00 for 5-6 days. Sell calls when put/call ratio drops below .6 for several days. That way you have the put premium maxed by fear and the call premium maxed by greed. The let time decay be your friend for both positions. It is tempting to want to cover when a put was sold at a fat price and dwindles down to cheap during a bull wave. On the other hand it is even more tempting to let it run down to zero and not incur a second commission when it expires. The hard part is knowing if you are rolling over and at a top - that's why I check in with you market guru's.<smile>. The more I have calculated Tom Drake 2cs - the more I like it. Nothing is foolproof and always on the money - but it does an excellent job of filtering out the noise. The next part of the formula that gives me peace is if the market has rolled over and drops below your put exercise strike price - you get a nice stock at a discount that continues to pay a decent dividend. There always is the worst case scenario that the company reduces or halts the dividend. I took that calculated chance when I sold kmi, rig and esv puts. I expected the dividends would be cut to zero - any continuation was a gift. I sold the puts out in time by about 15 months so I could max out the time premium and give oil the max amount of time to recover. With 6 months to go KMI is the stinker and rig is well in the money with esv soaking up the gain in rig. I want to build a dividend portfolio on a very long term basis - her'e my thinking: If you bought semi's in 2001, If you bought Banks in 2009 If you bought oil & gas stocks in 2015 Over time you'd have a low cost high yield portfolio that would provide long term stability in dividend growth. The nature of the markets punish and reward sectors continuously - use the weak spots as entry points. The one real big important aspect that you MUST be correct on is - This sector will continue to growth in the very long run. Semi's oil and gas and banks are pretty solid long term plays. Pharma and biotech are other great growth sectors - biggest worry there is government intervention ( like banks suffer from still). Utilities are interest rate sensitive as are REIT's. But worth being in. Telecom / satellites and Photonic integrated circuits are all long term mega trend I like. To me, that much easier and less stressful. What Sam does, I admire but I'm not near nimble enough to switch daily or weekly. I do greatly admire that - but it does not fit my tolerance level. Bob