(02-15-2019, 07:47 AM)crimsonghost747 Wrote:What do you think of this move? I've been watching NWL but know they are in distress so for a long time been looking for an optimal entry. Stock dropped 20% on bad 2019 earnings outlook today. Solid brands but they have a train wreck to fix and stock isn't running higher soon IMO. Dividend must be well over 4% now and they have always paid it to my knowledge. They are far from losing money though. Real DIV growth is probably dead for a whilefenders53 Wrote:Thanks. I looked at SIX sometime back but missed the bad earnings report today. Still looks like an opportunity. I took a little different approach but it is my version of going long. Sold a June 52.50 put so I may be in for 100 shares if it is below that in June. Got paid $3.40/SH for the risk today. Just a bit over one full year of dividends received now. I like the risk/reward on this one.While in general I'm not a big fan of selling options far out in time, this one does look quite interesting.
If you don't get assigned it almost 20% annualized, definitely a nice income. (if my math is correct)
If you do get assigned then it gets a bit more complicated but we won't know until June. :p
IMO, but DIV is already high.
Speaking of long options, here is what I just did.
Sold a JUN put strike 16 for 1.15. That's about 20% annualized. Today I am real good with being assigned NWL at a sub $15/SH basis. Dividend would be very good.
Sold a SEP put strike 17 for 2.10. That's more than two years of NWL Div in my pocket today so I am feeling good with the risk reward on this one. It's OK to disagree, but I'll move the premiums to my ultra short bond fund now.
