The high Implied volatility in the market, makes it easy for use to find income trades. Like we often publish on Twitter, We have a dividend capture watch list – These are stocks that distribute dividends before expiration (usually 5-30 days) and we are trying to capture this dividend and sell call options to capture the premium and price decline.
What we are usually looking for are good stocks and relative short holding term. We put them in a watch-list and buy them during the week, if we see good opportunity.
The dividend capture watch-list:
* Though we have a full list, the only stock I really like is HSBC. There are several more (like AMGN) I like, but I don’t think i’ll change my positions for them, unless a unique opportunity will arise. Next week I’ll have a new list of candidates, and hopefully more stocks I like (like last week’s list).
Try OptionSamurai for free:
- See all these stocks in OptionSamurai
- We have a dividend capture scanner that you can try and then customize to fit your needs (you can try in the free demo):