SI
SI
discoversearch

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 : Option Strategies -- Ignore unavailable to you. Want to Upgrade?


To: sm1th who wrote (1912)2/21/2018 10:20:36 AM
From: robert b furman  Respond to of 2591
 
Hi sm1th,

Sell some F 9.87 puts for over $1.00.

I have a range from .70 to 1.04 January 18 2019 9.87's.

With the supplementary dividend (.13) they pay .73 this year.

If any infrastructure gets going Ford trucks dominate the Work truck market.

Low risk

High risk sell HCP puts @ 22.50 or 20.00.

HCP pays out 1.48 (payout ratio in the high 90's) but very solid lease clientele.

Yields mid 7% dividend if put to you of the premium to net purchase price is 12 %?

Bob



To: sm1th who wrote (1912)2/21/2018 11:06:56 AM
From: alanrs1 Recommendation

Recommended By
Thehammer

  Read Replies (1) | Respond to of 2591
 
I've been doing okay with a WDC buy/write the last couple of months.

Under 17K invested in 200 shares in late December, called away in Jan at 85.
Repurchased at market and sold Feb 90 call, expired worthless.
Sold Mar 90 calls yesterday at 1.30.

Up $654 so far on completed trades, with the $260 still out there.
Willing to do similar up to 100, might be able to hit 25-30% over the year.
Also willing to sell put(s) if stock goes to 80, roughly my current cash cost on the 200 shares anchoring this CD substitute. Dividend is okay too.

ARS



To: sm1th who wrote (1912)2/21/2018 4:59:33 PM
From: Thehammer  Read Replies (1) | Respond to of 2591
 
Do you just let them expire or but back / roll? If mine get to less than 90% value (i.e. I can but back for $.10 on the Dollar) or time value decreases to potential assignment, I will roll them using a spread order. I wrote a boatload of puts just before the crash and most of those are now ITM for March.

My number 1 rule is don't write puts on stocks that I don't want to own, those typically have really juicy premiums. Right now I have shorts in BA, HD, MCD, PH, CMI, WSM, NKE, HON, CCI, WBA, NVDA, QCOM, MMP. A few are new but many I have been doing for years although some have not been consistent shorts.

EDIT: I wish that some of these stocks would split.