Big Babu

Big Babu
Contributor since: 2012
I remember the last time I checked, they pay out dividend twice a year. The interim dividend is always much less than the final dividend for the year. You can always check the company's Investor's Relations page for details. Besides the exchange rate, ADR fees are another issue.
I like COH, but the current sales trend is worrisome. KORS and KATE seems to be in favour these days... not just by wall street but by customers as well. COH might need to reinvent itself before things turn around.
Looking to see when a bottom kicks in. I'm happy to sell puts on this stock especially if it flatlines in the next little while.
Lefty, how big are your CLF positions? Have you ever considered selling put options as a way to enter your trade? The put premium is very generous on stocks like CLF!
Great idea Robert! Glad to see I'm not the only one selling puts on CLF!
Hi all,
I just want to let people know that I recently started a blog at http://bit.ly/PkTu5i where I plan to document my trades and discuss possible trade ideas. The blog will also allow me to monitor my existing positions, along with setting up watch lists for stocks and options.
This blog is still pretty much work in progress, so expect to see major changes and renovations in the near future. New features will be added to allow better performance tracking and position monitoring. Feedback/suggestions are always welcome.
Thanks,
BB
I can access the address you posted, and I can see the dividend amount and date. Yahoo occasionally has issues, but most of the problem is due to the custom APIs running on the google spreadsheet timing out.
Hi SI,
I'm currently developing a website for this. My initial goal was to create something so that I can keep track of my personal option positions and also have a stock/options watch list that I can monitor regularly. If there is sufficient interest, I will allow users to sign up and allow them to add and monitor their own positions too.
I will announce the website as soon as the interface is complete.
Thanks,
BB
If you made a copy of the Google spreadsheet I shared, you are all set. You can either edit the rows or duplicate them. Look at the formula under the "Dividend" column to see the GoogleFinanceAddOn function.
Prices will refresh when you first load the spreadsheet, and periodically if you keep it open during trading hours.
Hi AP,
You can find the shared google spreadsheet here:
http://bit.ly/JeKlSK
Just select "File->Make a copy" and edit away!
BB
Just a few points shy of 1700 on the S&P and the talking heads say that taper has largely been priced in. So without all this tapering talk we would be at 1800 already?? What a resilient market!
You're very welcome SkipK! I'm glad you are putting it to good use.
I look at my list almost on a daily basis :)
That sounds like a great plan SkipK. There's always time value to be sold!
If the Fed reduces asset purchase, us dollar goes up and silver goes down. If market goes down, then us dollar goes up and silver goes down. If market goes up, then silver goes down.
So the moral of the story is -- silver goes down.
I like your strategy surfgeezer! TFSA for me since its tax free.
Thanks for the comment Chris!
My intent is to expose some of the better known and lesser known banks based in Canada, catchy title or not. BMO definitely has a strong presence in the US. Same can be said for BNS which has been expanding to Latin America. As a fellow Canadian, I'm looking towards adding these banks to my TFSA (it's that time of year again). I agree with you that the big 5 banks are in a strong uptrend... and even the smaller banks like National Bank and Laurentian Bank could be following suit. One can only hope for a pull-back!
With regards to the "steady increase", I meant to say that dividends have been steadily increasing over the past 20 years although the period from 2007-2012 seems to be an exception. No increase, but no cuts either, unlike other sectors in Canada.
Thanks Paulo. Just wondering what your thoughts are on SDRL?
Yes, I love reading Teddi's website! And I still do regularly.
Hi alexkeywest,
I understand where you are coming from. You prefer to view your return based on each individual transaction. But let's not cheat ourselves into thinking that we can get 5 dividends a year for each stock we own, on a year-over-year basis. There's a reason why they call it quarterly dividends :)
Yes, I'm familiar with dividend capture strategies, although I have not tried them out myself so I can't comment on their successes.
Hi alexkeywest,
I think trying to annualize the yield this way seems a bit flawed. You are effectively lumping the dividend payment into a shorter duration (57 days) instead of the usual ~90 days. This is like saying, if you bought INTC just before ex-dividend, you can collect 5 dividend payments in just a little over 1 year.
I agree with your last statement. You should definitely consider both alternatives and the overall market trend, and find one that gives you the best risk/reward.
There are two kinds of options: American style and European style. American style options (which is what we trade on the various North American exchanges) allows the option owner to exercise their option anytime up to the expiration date. European style options on the other hand can only be exercised on the expiration date.
Early expiration is common when the option is "in-the-money". This is especially true for call options that are going ex-dividend since owning the stock (through call exercise) gives you the right to those dividends. The other reason for early exercise is if the option is so thinly traded that you lose out more with the bid/ask spread than you do buying or selling the underlying stock. Common examples are options on ADRs.
Hi alexkeywest
For the put example you outlined, your downside protection is 20.00 - 0.40 = 19.60. The 0.40 you get is for the Jan '13 $20 put. You should not be using the current market price to calculate your downside risk.
Regarding the call example, you should really compare apples to apples by using in or near-the-money options for both. The Jan '13 $22.50 call is selling for 0.64, which annualizes to 12.14%. Add in the dividend yield of 4.1% and you get about 16.24%. The Jan '13 $22.50 put is selling for 1.40 where the 0.86 time value annualizes to 16.02%. They are comparable.
Regarding downside protection, the call gives you downside protection of $21.95 - 0.64 - 0.22 (dividend) = $21.09 assuming you collect the dividend. For the put option, your downside protection is $22.50 - 1.40 = $21.10. Again, they are comparable.
The problem with owning the stock and selling the call option is that rolling the option is that much more difficult. If the stock suddenly drops, should you buy back the call option and sell one with a lower strike? Should you roll it forward at the same strike? What if the stock price suddenly recovers? Will you be exercised at a loss, or even before ex-dividend?
Thanks,
BB
Thank you djohnsonhot for the great information!
Regarding the SPY put hedge, buy when protection is cheap (implied volatility drops, or after a spike up). It makes all the difference in the world!
Are you sure the quote is 0.20 for the Jan '13 $20 puts? Google Finance, Yahoo, and Morningstar all say 0.41. Unless these quotes are all wrong.
From my understanding, any ex-dividends before options expiration will be factored into the calculation of the option price. For put options, this will increase the option price prior to ex-dividend, and will drop after ex-dividend. The reverse is true for call options.
Regarding the incremental yield over holding INTC, 5.7% is more than the current dividend of 4.1%. That's like getting twice the dividend!
Hi kgerickson,
I have a portion of my capital in my trading account where I sell cash secured puts, covered calls, spreads, etc. The 12% a year target is meant for my trading account. For example, if I have $10000 in my trading account, then I expect to earn $1200 a year from writing put options. Let me know if this clears things up a bit.
Thanks!
Hi pnenov,
My assumption is that you have a margin account, and have sufficient margin to execute your trade. I am more of a conservative options trader in the sense that I will keep enough cash or equity position in my portfolio to buy the stock at the strike price if necessary (cash secured puts). I would recommend the same for others who wants to avoid running into the first two points you mentioned.
Naked options are indeed risky. Covered options are less so, and can be consistently profitable.
I agree with you gulatin. Your point about the IV is spot on.
Thanks Ong! Glad you agree!
I'm pretty sure dell and hp does more than just personal computing... Last I checked they are also in network switches, servers, print, etc. The arm processor is nice, but it can't replace all of this.
Actually I have something in the works... basically it fetches semi real-time option quotes from various sources on the web. I'm trying to design a front-end for this and hopefully make it available as a web app.
BB
Why is gold total BS at 1600?
Hi SB,
Yes I'm still using my google spreadsheet, but have also noticed that canadian stocks are no longer working. I'm not sure if Google decided to pull the plug, or if this is a temporary problem (almost a week now).
BB