11-19-2019, 06:40 PM
(11-19-2019, 08:27 AM)NilesMike Wrote:(11-18-2019, 04:38 PM)NilesMike Wrote: Started an initial position in PRU, 93.34
PRU and MET are very good income stocks. Seemingly stuck in a trading range but you know what to do about that.
I've been using an IQT style method on this part of the portfolio. Buying at the high end of dividend yield range and selling covered calls at the low end of the dividend yield. I don't sell the puts because I want to be certain to be in these for the income and the capital ride to the other side of their channel.
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Not sure what style I use, but I'll call it straddling a long position. I keep a half position long in MET which is 200 shares. Sell covered calls on the top end of the range, puts on the bottom. I'm OK with owning 400 shares and that will happen someday. In the meantime I'm about 15-0 selling options that expire worthless on PRU and MET. I'd settle for a far worse outcome. If only there were many more stocks I felt this confident in a trading range.
