Dividends

[leftovers]

I am writing them at the money or one strike in the money so I lock in a little over my purchase price. You don't want to be too far in the money or they can take your stock before Xdate.


It could go down and if that is the case I would continue to write out of the money calls monthly or weekly to lower my cost basis. If they go up of course you miss out but I am doing it for the multiple dividend capture.



My criteria is for mostly blue chips paying between 3-7% So far I am 4 for 4 collecting 2 dividend underlying in the same month.


Much better that uncovered dividend capture where your lucky to get out in time to do this runs less that 50% .


I am going to experiment and fine tune it. I have a margin account but don't use margin but I have found that selling out of the money cash secured puts on some of these stocks in weekly options I can generate weekly income in addition to the dividend.


Also I can use my maintenance surplus in my account with out having to pay interest very interesting to say the least.