Continuing with our regular segment on dividend capture watchlist. We can see that some positions are monthly and so they will return from week to week. This also means we can wait for the best moment to enter the position and we don’t need to chase the positions if we don’t like the prices. You can follow us 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 still like HSBC. Also I’d look more into VIAB and GM (and LUV from previous weeks).
Try OptionSamurai for free:
- Analyse those stocks 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):