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Goldman assembles a list of 25 dividend favorites with unusually high volatility - meaning put...

Goldman assembles a list of 25 dividend favorites with unusually high volatility - meaning put sellers are getting a hefty premium for agreeing to buy the stock at a lower price. Make sure you want the stock first. The strategy works well sometimes and is the proverbial catching a falling knife at others. PFE, BLK, SE, PCL, CL, AEP, SPG, PG, KMI, AVB, CLX, CTL, TWC, LO, T, PM, TWX, NSC, DUK, VZ, WHR, WY, NEE, XOM, SCCO.
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Comments (18)
  • Russell59
    , contributor
    Comments (11) | Send Message
     
    As a long term owner of both Philip Morris, and Exxon Mobil;
    I would suggest selling the December puts. The premium is high, and if you get forced into the stock, you're getting excellent value from two stable dividend payers with tremendous upside.

     

    RUSSELL
    24 Jun 2013, 03:31 PM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
     
    The Squid wants you to buy while they are selling so they can move the loot into safer treasury.
    24 Jun 2013, 03:39 PM Reply Like
  • Chucklesg
    , contributor
    Comments (53) | Send Message
     
    The last place I'd look for a stock recommendation would be Goldman. They play both sides of the street, cheat their customers, and then get rewarded by their buddies in Treasury. What joke.
    24 Jun 2013, 03:42 PM Reply Like
  • PSalerno
    , contributor
    Comments (3813) | Send Message
     
    I did not know the Goldman's advice, but before it came out I sold PM 82.50 puts and PG 75 puts, both in the list. The premium is quite good.
    24 Jun 2013, 03:46 PM Reply Like
  • jackooo
    , contributor
    Comments (1525) | Send Message
     
    I rather trust Jack the Ripper than Goldman advise...
    24 Jun 2013, 04:18 PM Reply Like
  • spinrbait
    , contributor
    Comments (389) | Send Message
     
    who do y'all trade with when selling puts. i want to, but scottrade doesn't off it without going to options first. and i just am more comfortable with scottrade. there are actual people there i can see close by.
    24 Jun 2013, 04:43 PM Reply Like
  • CassandraSees
    , contributor
    Comments (388) | Send Message
     
    Forgive me but I believe Puts and Calls are options - - And options are really not that easy to understand - Talk to Scott Trade about a seminar to learn about them before you plunk money down on either
    24 Jun 2013, 04:58 PM Reply Like
  • seabuie01
    , contributor
    Comment (1) | Send Message
     
    I've had good trades using Optionshouse.
    25 Jun 2013, 12:05 AM Reply Like
  • spinrbait
    , contributor
    Comments (389) | Send Message
     
    thanks sandra. i didn't make my self clear. i do trade options. i mainly sell covered calls. and i love doing it. but scottrade's trading platform doesn't allow selling puts. they have a sister company called options first. but i don't want to put my assets there over scottrade. i am old school and still fear waking up one morning and the online site is gone. lol. i still want someone i can walk into the office and see face to face.
    25 Jun 2013, 09:11 AM Reply Like
  • CassandraSees
    , contributor
    Comments (388) | Send Message
     
    I agree about walking in to see someone - - That was a deciding factor when I chose Scott Trade - - I was not aware that they only allowed one side of the option trade since I have not availed myself of that function . . . yet - -

     

    In terms of waking up some morning and the assets being at risk , hopefully we will never experience Cypress or MF Global with our current choice
    26 Jun 2013, 09:44 AM Reply Like
  • Russell59
    , contributor
    Comments (11) | Send Message
     
    Call Fidelity....You can trade/sell "Puts" with them.
    Good customer service, low commissions as well.

     

    RUSSELL
    29 Jul 2013, 05:36 PM Reply Like
  • milkchaser
    , contributor
    Comments (958) | Send Message
     
    The biggest downside of selling these puts is that they tie up the cash required to buy the underlying stock, same as if you'd actually bought the stock, until expiration (or exercise) of the option. Granted, if obligated to buy, you get it at a discount to the price when you sold the option, but also when it is no longer a discount to the going price -- and you missed out on the dividends while waiting.
    24 Jun 2013, 07:12 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (3105) | Send Message
     
    If you sell puts you collect a small premium but you are exposed to all the downside of a security. Ask the folks who were short puts going into the crash of 1987, if you can find any. People who sold straddles were crushed, too.
    If you sell calls, all your good stocks are called away and you are left with the duds.
    For best long term results, skip option trading.
    24 Jun 2013, 07:55 PM Reply Like
  • Mercury Value
    , contributor
    Comments (565) | Send Message
     
    Selling puts in quality enterprises is a rewarding pursuit. I have full confidence in XOM and MO to weather the storms. The way I see it, you're being paid to commit to purchasing a stock at any price which is desirable to you. Sure there are risks as you delve further into the arcana of options, but that is really all there is to the put-selling of quality companies.

     

    (Just make sure to CYA.)
    24 Jun 2013, 08:44 PM Reply Like
  • EMS
    , contributor
    Comments (579) | Send Message
     
    Please explain CYA in this context. Thanks
    24 Jun 2013, 09:56 PM Reply Like
  • GHWB
    , contributor
    Comments (3) | Send Message
     
    cover your ass
    25 Jun 2013, 09:17 AM Reply Like
  • Momintn
    , contributor
    Comments (4271) | Send Message
     
    Seems to me that if you want a stock, it is likely to go up, so you won't end up owning it. And if you don't really like one, you shouldn't sell a put because you may end up owning the stock.
    I would like to know who has made good investment decisions following Goldman's advice.
    25 Jun 2013, 12:15 AM Reply Like
  • walter38w
    , contributor
    Comments (5) | Send Message
     
    Momintn: answer, NO ONE! except little lord blankfein.
    26 Jun 2013, 08:37 AM Reply Like
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