Seeking Alpha

Option Income Investor

Option Income Investor
Send Message
View as an RSS Feed
Latest  |  Highest rated
  • Reduce Or Eliminate Taxes On American Capital Agency, Other REITS [View article]
    Interesting article Doug.

    I do a similar strategy using options on high dividend stocks I do not mind owning. I sell 2 month in-the-money (ITM) put options after the stock goes ex-dividend. The option premium collected is considered capital gains (in Australia where I am a tax resident).

    If things go as planned, the stock price should rise as it approaches the next ex-dividend date. and my put options will expire worthless.

    If the stock price does not go up, my puts will be ITM when the options expire which means I have to buy the stock. I will own the stock in time to collect the next dividend.
    Mar 1 04:45 AM | 1 Like Like |Link to Comment
1 Comment
1 Like