BUILD YOUR OWN PAYCHECK! - Page 24

i plan on getting in CIM once the div is announced. I plan on liquidating after it's paid out, but will keep 50% of my stake in due to the potential of the PPS.

The easiest way to make money is with sell to open puts. I have yet to lose money on these. For example: you want to sell to open 1 put contract for apple. Apple currently is down to $380 but you know that it will get back to $400 one day or at least not fall below $350 or something. You set in your order, mine would be at $370 or $380 to be on the safe side, and you get a premium of about $2000 for that 1 contract. The catch is if you bout a $380 contract that expires January and apple is below $380, $375 for example, you have to buy 100 apple shares at $380 so you lose $500 (100 x (380-375)) and you lose the premium of $2000. But that's never been the case for me and I don't play too conservatively. You can even put a super safe target of $340 but you won't make as much money because it's less risky.

Venom, thank you for that post.  I have never sold open puts.  I only buy calls and puts.

When you do this(sell open puts).....take your AAPL for example....I sell to open 1 contract @340-ish(to be safe).(when does this premium appear?)....close to expiration do I then have to buy to close?....or let it expire?

Is there an obligation if at expiration AAPL is at 380?

 

 

Sorry for the questions....I only buy and sell regular options in my years.

 

Thank you for any assistance

 

Once you've sold to open the contract, you have a cost basis. A current Jan. 21 $370 contract costs 10.10 per share so $1,100 per contract. As time goes by this contract will shrink in value (the goal is for it to hit $0, so it expires worthless) and at expiration you will let it expire. Since the day you buy you will be making money (hopefully, essentially a sell to open put is a call because you want the stock to be over $370 at expiration, for example). You won't make the $1,100 at once but over time (up until expiration) you will make money because the the put will decrease in value and you will owe less. (So if apple is now $380 the put might be $7. Already you'll have made around $300). The thing that's a downside to this is if expires and apple is under $370, you will lose $1,100 and you'll be forced to buy apple at the pre determined price of $370, even though currently it might be $365 for example. In this case you would be set back $1600. It's okay because usually I do sell to open on stocks I wouldn't mind owning anyway, even if I lose money with the sell to open put option.

Oh, and you also just let it expire on expiration day. It'll expire worthless and you'll have made however much you sold it for when you made the transaction (so $1100 in the example I made).

YLWPF is an example of this.  The One and I were talking about it a few posts back.  I liked it and got in.  Unfortunately, I got in at .90/sh and because of the struggles print media is having, they dropped to .20/sh fast.  They also eliminated their dividend.  A bit of a horror story but I doubled down at .18/sh as I believe this company has enough gumption and direction to continue to compete.  It's currently at .162/sh and to me still a viable company.  They were using 20th century mindset with the 21st century tech passing them by at a break neck speed.  They made some management changes and have started to move in the right direction with internet advertising and getting away from the print media.

You should also tell the risks involved with naked options....personally, I don't have the guts to do them.

 

If you're wrong it can wipe you out pretty quickly.

You have to have enough to cover the losses ( or a good portion ), before you can even put on the trade.

 

If you are interested about doing naked options, try credit spreads 1st....limits your profits, but also limits your losses as well:
 

http://en.wikipedia.org/wiki/Credit_spread_(options)

 

 

*cough cough* back to the divys... what do you guys think of JE.TO?

I like what they have to offer considering the potential of natural gas in the future.  They are JSTEF on the OTC.  They just released a statement that they believe they are severely undervalued and are also suspending their DRIP plan which I'm not sure I understand the reasoning behind.  However, a .10/month dividend is nothing to scoff at and they believe it is an easily sustainable dividend.  Natural Gas is going to have a big role in the coming political administration IMHO and any company that has a solid business in place stands to profit hugely from the U.S. as we will start to trend away from oil.  It won't be overnight but with the U.S. having reserves of natural gas that DWARFS any other nation, it's a no brainer.  Just need the right person with the right vision to make the long range plan.  My 2 cents.  THE ONE, as always, you come up with neat and intriguing companies that I would never even be looking for let alone come across

Hello, I´d like to join the dividend stocks but actualy I´m stuck in finding the best tool. I am not a US citizen, want to invest from abroad.

I have seen a notice about "etrade" in previous posts, but it looks like they ask for high charges for each contract.

 

Could you please advise which trading to choose?

 

and what about overnight margins if I would open a possition for example for 1 year. is it still worth to step in business?

 

thank you very much for any comment

 

Drido

here is another... no monthly but a quarterly divy, current yeild is about 20% at the current sp... Chorus Aviation Inc. A or B series shares don't matter, you can get this one in the U.S. as well on the greys... I know its an airline, I don't know many that like airlines and neither do I much but this is a solid business and you can't scoff at that divy.

 

Guys, I am new to Divy's....

What would you guys reccomend for a solid return to park some money in for a while for a nice return? 

Curious what the vets have their dough in?

Thanks guys, would love to check out some of your holdings.

I like ATT and Centurylink But I also have a bunch in F, JKHY and MCD

where did you hear JE is suspending their DRIP? Their website says its still on...

 

What's going on..., any good Dividend picks? A family member of mine apparently does pretty well with the dividend strategy. Usually he is buying in to get the dividend and then getting out right after, and going to another one.

You know that the PPS drops by the same amount as the divi the day after?

 

 

He needs to know that he should sell before the ex date,  and buy before the record date.  I follow the 2 day rule,  buy 2 days before the date of record,  sell 2 days before executable date.  Collect big fat divy..

But if you are not holding on the ex-date, do you still get the dividend? I thought u could only sell it after the record date?

 

 

The dividend is payable to shareholders on the Record date..  the executable date is the day that the divi is paid.  You do not have to hold the stocks til the executable date,  just make sure you are a holder at the close of the date of record.   Always sell after the date of record,  and before the date of the execution of the dividend.

^^ thanks