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

To: robert b furman who wrote (1928)	3/5/2018 12:25:10 PM
From: Thehammer	Respond to of 2591

Hi Robert, Thanks for the well wishes re: moving. I had a great plan but the house that I am renting was not ready on time and it put a crimp in my plans so chaos ensued. I think that I followed your lead on HCP before. My motto is whatever works for you and is in your comfort zone. I typically look for 2.5 or greater the dividend on the underlying or if more risky then 1% a month plus. Keep refining my approach although the market often dictates when I pare back or add because it is often feast or famine in finding good candidates. Right now it is more feast but that is because of additional risk. My plan is to leave a lot in boxes since I plan on building..... Cheers

To: robert b furman who wrote (1928)	3/7/2018 6:26:48 PM
From: robert b furman	1 Recommendation Recommended By CusterInvestor Read Replies (1) \| Respond to of 2591

Here's a good play on XOM - the bluest of blue chips in the oil patch. I think energy is bottoming as the generals are finally being taken to the wood shed - its buying times boys and girls! screencast.com XOM's 3 year low ($66.55)was on the week of 8/24/15 - a tough time for the oil patch indeed. At today's close XOM's January 18 2019 puts were bid - ask $3.85 - $4.00. Assuming you could sell these puts tomorrow at the ask $4.00 you would have the following: Net purchase price of $66.00 if put to you! A $3.08 dividend on a net purchase price of $66.00 (below the 3 year low of $66.50) would yield 4.66 %. If you took the $4.00 and kept it as collateral till January 18 2019 you'd tie up your money for 10 months. $4.00/$66.00 (net purchase price) = 6.0606% /.833 yields an annualized return of 7.27%. So if your have option purchasing power in your account, you can add $4,000 to your account (which will hold margin purchasing power till January 18 2019 at no cost to you and get paid a pittance for the cash balance. You either make 7.27% on your collateralized money or you get shares at$ 66.00 (below the 3 year low) and at a dividend yield of 4.67%. Exxon's a rock and I always buy early - but if it keeps dropping until the Macd flat lines (which most stocks do) this story only gets better. There is some room for this to get better as a january 2019 70 put traded today at 2:19:25 @ $4.18. (4.68 dividend yield or 8.8% on your money. No bank does that!!! Thanks again for bringing this to me. Sharp Eyes Grid ! Bob