The markets continue to be range-bound. They fail to create new highs, but as long as there is no immediate risk to the financial system and nowhere else to invest – it also can’t create new lows.
This choppiness is good to our dividend capture strategy, but it hurts my protective puts. Even though, I rather hold them just in case and lose them than not to have them and be in need of them… Here is the current market trend:
We still feel that the dividend capture strategy will pay off – If market will move up – we will earn premiums and dividends, and if the markets will go down – we hold them to longer-term and will have more cash to re-enter the market. Similarly to previous weeks, I’ll be focusing on great companies (8 and above) that have dividends yield of more than 2% (using our new feature) .
As a reminder: I’m looking to open positions in good companies that distribute dividends in the next 5-30 days. I’m selling covered calls on those stocks so I will profit from the dividend and the option premium. You can follow us on Twitter, where we often publish more trade ideas.
The dividend capture watch-list:
(13 Results. Charts are visible on site and not in email)
* I Really like CL, T, BMY, CSCO and PFE.
** I think WIN is worth a more in-depth look for the long-term. If they can pickup their business this could be a real good position
Try OptionSamurai for free:
- Analyse those stocks directly in OptionSamurai
- We have a dividend capture scanner that you can use to find trades or customize to fit your needs (you can try in the free demo):