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401k rollover - "final" portfolio building
#22
I can't complain you didn't give me choices. Smile I've sold options on about 15 of those. Now to wait for some to pullback a bit. You don't have to wait for a correction, but selling puts on overbought stocks is not a good strategy. For the near future look at the ones that are actually trading towards the lower part of their trading band. You do have some stocks listed that have pulled back. Target the ones that are down on bad news that doesn't concern you long-term.

KO stands out as one to practice with. I don't see a lot of downside from here. There are many on your list that will be good when they pull back just a few dollars. I have no predictions for the S&P 500 short term, but that list is long and full of very high quality stocks. You'll get your chance for some of them soon enough.

Maybe sell a KO put like a MAR Strike price 45, or an April Strike 44 or 45. Grab some instant income and then watch the option price move as the time erodes. You won't get rich but you'll learn how this works. If KO dips and you get exercised the first month you try it, you just locked in at a decent price and a 5 1/2% yield for the year with Div and option premium.

I have 46s sold now. About two weeks and six weeks expiration I think. Received a good premium and I'd like some shares soon if it doesn't bounce. Selling a put just below current share price brings in a decent premium, and a likelihood you'll be assigned if that is the goal.

I don't intend to own ABBV, but if you like it that is another one that is surely way off it's high and good for a put sale. An April 75 or 77.50 put looks pretty good. Nice premium and you get in at a 12+ month low. Personally I think ABBV is going lower the next time market dips but that is pure speculation. I'd trade that one out of the money (like $5 under market) and let it walk back to me as I sell new puts. Did I make that sound easy? Well sometimes it's not. I think you are in a similar situation as I am. Trying to re-invest big money that represents a lifetime of investing, and it's damned stressful i this overvalued market. I'd strongly prefer you practice small with something like KO because I won't feel bad if you end up $100 upside down next month for listening to me.. I'm a phone call away if you'd like to chat. Just PM me.

Dewayne
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RE: 401k rollover - "final" portfolio building - by fenders53 - 02-19-2019, 02:35 PM



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