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To: robert b furman who wrote (43441)7/1/2020 10:22:39 AM
From: E_K_S  Respond to of 52062
 
Re: Hi EKS,

The one thing different this cycle is the all time lows in the 10 year Treasury yield at 0.69%. That makes a 6% div yield extremely valuable. Just think how valuable your dividend streams become if/when we ever go into negative interest rates like Germany (now at -0.4%).

That is why I will limit my covered call positions to no more than 30% on my inventory.

Also, if/when we get these wild down swings, I will add back to my inventory selecting from my stable of dividend payers. I am always looking for better value div payers (aka Dividend aristocrat) so one goal is to begin to start new positions in these so there is some growth in the mix.

It's never to early to start learning new things. I tell my youngster friends that in the last 10 years I have learned more than my first 50 years.

Check out these online covered call calculators and/or look at your trading platform if there is a 'real-time' covered call option calculator built in. Street Smart Edge keeps adding new functions to their platform. I only discovered their covered call option calculator recently. It feeds on their real time option data stream so you can set ROI % return targets by Strike/Time price.

Happy 1st day of Q3

EKS