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Allan9871

Allan9871
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  • DIY Dividend Investors Club (Part 2): The Challenge Of Building A Portfolio In A Rising Market [View article]
    How about selling an Oct or Nov $39 strike put for KO?
    Sep 19, 2013. 12:21 PM | 1 Like Like |Link to Comment
  • How To Get Monthly Income By Selling Cash Covered Apple Puts In Your IRA [View article]
    Hi Rookie – I’ve read most of your articles and agree with you 100%. I have been selling cash secured puts and covered calls on a monthly basis for about a year. My return on risk from selling options has exceeded 16% per annum after all commissions. Obviously, there have been many times when I would have been far better off to simply buy and hold the stock rather than sell an option. However, as long as I can continue to generate cash at a rate of 15% per annum, I’m happy. So far, it has been a very reliable way of generating cash every month, however, it is a lot of work. I usually sell around 10 positions every month and will have around 25 trades going at all times. I generally sell positions 60 to 120 days out and will close them early when I can do so for a minimal amount. My broker is Think or Swim, which was recently acquired by TD Ameritrade. I appreciate your articles, keep up the good work.
    May 2, 2012. 07:44 PM | Likes Like |Link to Comment
  • Largest Shareholder Trims BHP Billiton Holdings [View article]
    Hi Bob - I agree with your analysis on BBL. During the past 6 months, I have been selling short puts at strike 50 and 55. I have not yet been put the stock, but I have collected $5.60 in option premims. If the stock price falls and I get assigned, I will be happy to own BBL for the long term and collect my dividends. In the mean time, I will continue to sell puts on price dips and collect over 15% per annum on cash
    Mar 30, 2012. 01:39 PM | Likes Like |Link to Comment
  • Building A Capital Preservation And Income Portfolio, Part 3 [View article]
    K202 - I read all of your articles and have followed many of your recommendations. Every one of them has been a winner for me. Thanks for all your hard work.

    Allan
    Jan 27, 2012. 07:22 PM | 1 Like Like |Link to Comment
  • An Updated Enhanced Income Strategy For United Technologies [View article]
    Hi K202

    Thanks for this followup article on UTX. I am currently short the Dec 67.50 puts which I sold for 1.66 earlier this month. I've sold puts on UTX in Sep and Nov and have collected a total of 3.03. I still haven't been put the stock.

    Allan
    Nov 9, 2011. 12:39 PM | Likes Like |Link to Comment
  • Enhanced Income Strategy For Microsoft [View article]
    Hi K202

    I started using this strategy for MSFT on Sep 23, about a month before you published this article. I sold the Dec strike 23 put and received $1.03. If MSFT falls to 23 in Dec, I will own the stock and sell covered calls. If it stays above 23, my short puts will expire worthless and I will sell more puts. My return is 1.03 / 23 = 4.48% for 84 days, which equals 19.46% per annum.

    I started using this strategy to acquire stocks about two months ago in August. Since that time, I have sold short puts on 34 different stocks and have not been assigned on a single one. I usually buy back the short put once I have realized 90% of my maximum gain. I will then sell more puts at a higher strike for the same stock or move on to another depending on what the chart looks like. Obviously, I would have been better off if I would have just purchased the stocks because the market has been in a general uptrend since I started this process. However, I have collected a lot of premium, 4.82% of my beginning account value in two months. This is a long-term strategy. The goal is not to hit home runs, but rather lots and lots of singles.

    Regards - Allan
    Oct 26, 2011. 05:14 PM | 1 Like Like |Link to Comment
  • 3M Stock Dip Offers Excellent Dividend Opportunity [View article]
    Hi Todd

    Do you usually use put credit spreads as a way of acquiring stock. Or do you mainly use them for additional cash flow after you have already purchased a stock.

    thanks
    Oct 25, 2011. 02:47 PM | 1 Like Like |Link to Comment
  • Enhanced Income Strategy For Novartis AG [View article]
    K202 - I've noticed that for the last few stocks you have recommended you have indicated that you "have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours." Do you plan on having a position in all of your recommended stocks or are some of them just being used for demonstration purposes for your strategy?
    Oct 23, 2011. 12:17 PM | Likes Like |Link to Comment
  • Enhanced Income Strategy For BHP Billiton [View article]
    K202 - I don't have a natural resource/commodity stock in my portfolio, so I decided to go ahead with BBL because I was able to sell a put a long way out of the money for a decent premium. I sold December strike 50 puts and received $1.50. If the price of BBL drops to $50 in December, I will own the stock at that price and begin collecting dividends and selling covered calls. If it stays above $50, I get to keep my $1.50 and will sell more puts. My return is 1.50 / 50 = 3.00% for 64 days, which equals 17.11% per annum. The stock is currently trading around $61, which means it would need to drop $11 or about 18% in order for me to be assigned.
    Oct 13, 2011. 03:43 PM | Likes Like |Link to Comment
  • Enhanced Income Strategy For BHP Billiton [View article]
    I'm concerned about this pick. The bid/ask spreads on the options are too wide and there is no volume.
    Oct 13, 2011. 12:13 PM | 1 Like Like |Link to Comment
  • Enhanced Income Strategy For Medtronic [View article]
    K202 - MDT is another stock I previously used for this strategy. On 9/29, I sold November strike 30 puts and received $.69. If the price of MDT drops to $30 in November, I will own the stock at that price and begin collecting dividends and selling covered calls. If it stays above $30, I get to keep my $.69 and will sell more puts. My return is .69 / 30 = 2.30% for 51 days, which equals 16.46% per annum.
    Oct 11, 2011. 12:37 PM | 1 Like Like |Link to Comment
  • Enhanced Income Strategy For AT&T [View article]
    K202 - AT&T was one of the first stocks I used for this strategy. On 8/31, I sold an October strike 27 put and received $.81. If the price of T drops to $27 in October, I will own the stock at that price and begin collecting dividends and selling covered calls. If it stays above $27, I get to keep my $.81 and will sell another put. My return is .81 / 27 = 3.00% for 52 days, which equals 21.06% per annum.
    Oct 9, 2011. 12:05 PM | Likes Like |Link to Comment
  • An Enhanced Income Strategy For Spectra Energy [View article]
    K202 - I'm ahead of you on SE. I intiated a position back on 9/19 when the market was higher, so my entry point isn't as good as yours. I sold the Nov 24 put and received $.65.
    Oct 5, 2011. 06:13 PM | Likes Like |Link to Comment
  • Enhanced Income Strategy For Emerson Electric [View article]
    K202 - I am with you on EMR. I entered a position today; however, it is different than yours.

    I sold a December strike 35 put and received $1.25. If the price of EMR drops to $35 in December, I will own the stock at that price and begin collecting dividends and selling covered calls. If it stays above $35, I get to keep my $1.25 and will sell another put. My return is 1.25 / 35 = 3.57% for 72 days, which equals 18.11% per annum.
    Oct 5, 2011. 01:13 PM | Likes Like |Link to Comment
  • Enhanced Income Strategy For VF Corporation [View article]
    Hi K2002

    I have a general strategy question for you. Assume you have initiated a short put position on a stock, the price of the stock has moved down, and you believe your short put will probably expire in the money. Would you always take ownership of the stock, or would you ever consider rolling the short put down and out in order to delay assignment and lower your puchase price?

    Thanks - Allan
    Oct 3, 2011. 10:03 PM | Likes Like |Link to Comment
COMMENTS STATS
24 Comments
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