Pick good undervalued dividend stocks with active and liquid stock options that can be used to generate weekly and monthly income by selling covered calls and puts options.
DIA is down $6.41, or 1.89%. That suggests to me that the market is looking for hawkish (bearish) speeches from the Jacksonhole, WY, meeting of central bankers. That the Fed is likely to continue raising rates in its fight against inflation is a major reason I've suspected that the bear market rally would soon end. It clearly failed its attempted breakout, and that looks bearish.
In two or three days, we'll have more and better information. Meanwhile, it looks like there is a buyers strike. That puts the bears in charge.
My DIA was called early this morning at $338. The purchase price was $354 less $5.76 in puts and calls premiums and $5.7088 in monthly dividends equals a net debit of $342.533. The net loss on the trade was 1.32% not including commissions.
I'll wait 32 days to buy DIA again if puts are exercised. I can sell puts at any time without worrying about income wash trade laws so long as they expire and are exercised at least 31 days from now. I have DIA puts expiring worthless today and probably next Friday. If next Friday's puts look like they'll be exercised, I'll buy them back.
At the moment, DIA is at $337.26. So my calls would have expired worthless as I expected. But someone called them at $338 and has a small loss on the trade.
DIA is down $6.41, or 1.89%. That suggests to me that the market is looking for hawkish (bearish) speeches from the Jacksonhole, WY, meeting of central bankers. That the Fed is likely to continue raising rates in its fight against inflation is a major reason I've suspected that the bear market rally would soon end. It clearly failed its attempted breakout, and that looks bearish.
In two or three days, we'll have more and better information. Meanwhile, it looks like there is a buyers strike. That puts the bears in charge.
My DIA was called early this morning at $338. The purchase price was $354 less $5.76 in puts and calls premiums and $5.7088 in monthly dividends equals a net debit of $342.533. The net loss on the trade was 1.32% not including commissions.
I'll wait 32 days to buy DIA again if puts are exercised. I can sell puts at any time without worrying about income wash trade laws so long as they expire and are exercised at least 31 days from now. I have DIA puts expiring worthless today and probably next Friday. If next Friday's puts look like they'll be exercised, I'll buy them back.
At the moment, DIA is at $337.26. So my calls would have expired worthless as I expected. But someone called them at $338 and has a small loss on the trade.