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

To: sm1th who wrote (2431)	12/20/2022 9:03:33 PM
From: robert b furman	Read Replies (1) \| Respond to of 2591

You are correct that short term pays more. I'm very conservative, in my buying of stocks. If I spend my cash on buying a stock, IT MUST HAVE A 6% YIELD or greater. If you go shorter term it does produce more income, but at what taxation rate? In my case the 20% capital gains vs the 39.6% personal income rate justifies the need for more dividends. I always hope to get assigned the shares. In the last ten years of a bull market, the only shares I've been assigned were when I lucked out and chose an expiration month that coincided with a down turn in the market. I've not been selling puts in a big down bear market. So the puts I sell are balanced with the cash in my account available plus the dividend revenue as it comes due quarterly. In truth, I sell puts that if assigned my annual dividend stream will cover. I keep the cash in my account reserved for a terrible bear market. If and when that ever occurs, I'll pay cash for half of that balance, and enjoy the next years pay raise. Understanding that in a really big bear market, there may well be some dividend reductions / suspensions. That is why I really tend to invest in Dividend Aristocrats, or their fallen angels from that elite group of stocks. That's just me. Never intend to tell others how their view should be. Bob