Nordic American Tanker Pays Off Yet Again [View article]
Bryanz: I do not own tanker companies like FRO and NAT for capital gains but rather for the income they generate. You can boost this income in a bear market like this by selling covered calls on the way down. Because of the high volatility of these companies, their option premiums are quite high. I have achieved 44% income returns in the past year on FRO combining dividends with covered call option premiums. With that kind of income stream, I don't worry much about current share prices, only about continuing dividends and volatility. Long FRO and OSG.
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Bryanz: I do not own tanker companies like FRO and NAT for capital gains but rather for the income they generate. You can boost this income in a bear market like this by selling covered calls on the way down. Because of the high volatility of these companies, their option premiums are quite high. I have achieved 44% income returns in the past year on FRO combining dividends with covered call option premiums. With that kind of income stream, I don't worry much about current share prices, only about continuing dividends and volatility. Long FRO and OSG.
Nov 09 14:29 pm
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