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Technology Stocks : Cohu, Inc. (COHU) -- Ignore unavailable to you. Want to Upgrade?


To: EACarl who wrote (6406)7/31/2017 8:17:54 PM
From: robert b furman  Read Replies (1) | Respond to of 7827
 
Hi Eric,

Good move.

That is exactly the way to play it sell puts and calls and compare it to a boost on the dividend.

24 cent dividend is 2.4 % to 1.2 % that is for sure.

I think in the long term Cohu is a much higher stock so I like to sell far out puts at 3 times the dividend.

Many times last year I sold puts that annualized a 15% to 19% plus the dividend.

So cash collateralizing the put plus the dividend gets you 20% - I'll take it.

Now that the price has doubled - I'm leery about selling calls - but I think in the short term that is the way to play it. What month expiration did you sell?

screencast.com

I'm just not nimble enough to play the short term.

Nice trade and good contribution - thanks for the insight!

Bob