+- Dividend Growth Forum (https://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (https://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: Options Strategies (https://DividendGrowthForum.com/forumdisplay.php?fid=37)
+--- Thread: Conservative option strategies, what did you buy or sell today? (/showthread.php?tid=1835)
RE: Conservative option strategies, what did you buy or sell today? - fenders53 - 12-04-2020
(12-04-2020, 03:41 PM)NilesMike Wrote: Just sold out the 55C Jan15 on KO for $.91LOL Mike, we wear those boring stocks out. Sometimes I fall asleep at the keyboard but you can squeeze some nice return out of these. I guess they call it "wheel trading" now. They do on youtube anyway. Sometimes I can make them cut me an income check pretty much weekly for months on end. Most of mine finally ran up quick and I have calls sold in the money. So the fun is over on those for awhile. I just won't chase them very high.
This is how we do the Stock, put, call, dividend dance on a boring stock. LOL
RE: Conservative option strategies, what did you buy or sell today? - NilesMike - 12-21-2020
Time to (make the donuts) close out calls today.
RE: Conservative option strategies, what did you buy or sell today? - fenders53 - 12-21-2020
LOL, a lot of my options expired Friday so I have plans today as well.
RE: Conservative option strategies, what did you buy or sell today? - NilesMike - 12-24-2020
Did some bookkeeping this morning, one tranche "T" launched in June for strictly put/call selling...5 calls sold, 1 put sold, 2 dividends collected. 14.6% return since June.
The dance IS worth it.
RE: Conservative option strategies, what did you buy or sell today? - fenders53 - 12-24-2020
(12-24-2020, 11:42 AM)NilesMike Wrote: Did some bookkeeping this morning, one tranche "T" launched in June for strictly put/call selling...5 calls sold, 1 put sold, 2 dividends collected. 14.6% return since June.
The dance IS worth it.
I have sold puts and calls on eight or so boring stocks repeatedly the past year or so and it does end up with a lowish risk and lately above S&P return if you don't mind the hassle. I'll keep doing it. 15% return is pretty normal if you don't get impatient selling the puts. The entry matters a lot IMO.
RE: Conservative option strategies, what did you buy or sell today? - NilesMike - 12-24-2020
KO has "only" had 5% from the dance, mostly because of the price appreciation. Since end of June, total return on KO is 22.7%
RE: Conservative option strategies, what did you buy or sell today? - fenders53 - 12-24-2020
(12-24-2020, 01:27 PM)NilesMike Wrote: KO has "only" had 5% from the dance, mostly because of the price appreciation. Since end of June, total return on KO is 22.7%I still play some when the boring ones run a little too high, but you got to learn when to double down or not on the bet. KO has been very good to me. So have a bunch of other stocks trapped in range. CVS, WBA and PFE are also easy money when they dip hard. So is T and MO if you wait for a true dip. Many more like them. Waiting for the real dip is the hard part. T looks good at 30 but it isn't when it gets in a downtrend,
RE: Conservative option strategies, what did you buy or sell today? - NilesMike - 12-31-2020
Sold KO 19FEB21 57.5C for .71
RE: Conservative option strategies, what did you buy or sell today? - fenders53 - 12-31-2020
I miss playing KO. It's been good to me this year but I don't even own and long shares at the moment. I really need to get some puts sold next week. After todays options expired cash is getting excessive again. I need to start selling a larger percentage of longer durations again.
Conservative option strategies, what did you buy or sell today? - vbin - 12-31-2020
Sold PLTR puts, added MO, CRSP, KRMD, AMRX, NVTA, Bought AMZN. Sold T covered calls.
Small trading position in CCL, GME, MCD, M
RE: Conservative option strategies, what did you buy or sell today? - pdaignau - 01-03-2021
(12-31-2020, 09:14 PM)vbin Wrote: Sold PLTR puts.
Sold T covered calls.
Do you mind sharing details on these two (Strike price and Expiration Date)? I've been easing into conservative option play and am trying to learn. I understand selling the PLTR puts, but I can't figure out your reasoning with T. T is close to the bottom of its hi/low range, why not sell cash secured puts?
Thank you,
Paul
RE: Conservative option strategies, what did you buy or sell today? - fenders53 - 01-03-2021
Paul,
He will answer for himself but he already owns the T shares. He is adding income to the high dividend. If he gets forced to sell he will get some capital appreciation. To sell cash covered puts requires locking up more capital for a similar premium. Whether T is headed for 35 or 26 next is an assessment we have to make for ourselves. On stocks seemingly stuck in a narrow trading range it is not uncommon that I own shares and have both calls and puts open simultaneously. Those trades would not likely be made the same day or week, but in response to a price swing. Sometimes all options expire worthless. Add a dividend and that is good income. That was a good question though. Selling puts when a rangebound stock is getting oversold is usually good strategy.