A combination of Greek and Chinese ‘frenzies’ have sent the market tumbling to an important support level – 205$. The panic also sent our market sentiment widget to a neutral trend (from bullish). The higher premiums are positive for our options-selling strategies, but if the market break this support level we might incur losses. This is why I deleveraged and bought some protective puts these past weeks. I’m still bull-oriented but I want to limit my risk. There will be time to add to the portfolio. I will keep a close eye on this dividend capture watch-list – if the markets hold I will quickly enter into the trades.
Here is the current market sentiment 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 (6 and above) that have dividends yield of more than 2%
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:
(7 Results. Charts are visible on site and not in email)
* Some great results: CL, PG, WMT
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):