Since we see a good response to our dividend capture watchlists, we will continue with weekly segment. You can talk to us here or on Twitter, where we often publish more trade ideas like these.
To those who are new: We create a watchlist for stocks that distribute dividends before expiration (usually 5-30 days) and we are looking to enter those trades during the week. We hope to capture the dividend and lessen the risk with selling calls. This will usually allow us to profit from both the dividend and the call options. If the stock goes lower we will be able to continue and selling calls and lower the cost basis.
We are usually looking for are good stocks, meaningful dividends and relative short holding period:
The dividend capture watch-list:
* I like HSBC, IVZ, luv and VIAB more than the other (though MOS is good as well). I also like Teva, even though implied volatility is very low. Since I like the support and the holding period is relatively short I might enter a position Monday.
Try OptionSamurai for free:
- Analyse those 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):