I was filled on a few trades in the last half hour.
This morning was a busy morning with research. My plan is to take some of my profits and invest it into longer term positions in my Wealth Builder. Last week I had some very nice profits so I was researching to see where I should build a portfolio.
I’ve been tracking some interesting high dividend stocks. I have a list about 50 stocks long. When picking a stock I have a list of criteria to look for. Hopefully I can satisfy most. I look for a strong Stock, a low priced stock with potential to grow, a high dividend, and a stock with a good track record of paying a dividend. Also, I look for the last ex-date and the last pay-date. Hopefully my pick didn’t just pay a dividend.
I’ve been following Gannett (GCI) as a possible stock for the Double Dipping Portfolio. GCI is a media company. My broker has it as a “B” rated company. GCI has a 5 year record of consistently paying their dividend. It’s been paying 38¢ for the last 10 quarters ($1.52 annually) and the stock is at a low right now. I bought 1000 shares at $5.90. Their last dividend of 38¢ was paid on Nov 12, 2019. The next dividend should be paid the 2nd week in Feb. I invested $5900. If I can receive this dividend and the stock doesn’t go down, I’ll hold it for a while. The stock was entered into the Double Dipping Portfolio. There are now 3 stocks in this portfolio.
Buy 1000 Shares GCI @ $5.90
With my stock price of $5.90 my dividend yield is 25.7%. If the dividend stays the same, the 2nd week of Feb I’ll receive $380 in stock. If the price of the stock is the same at this time I’ll receive 64 shares of the stock.
In my weekly report I mentioned I like the Calls with Weight Watchers (WW). The stock has been moving up lately and I think it might be time for a little break. This morning with the stock at $45.40 I sold 10 Contracts of the 1/17/20 $47 Naked Call. Naked on a hot stock is a little dangerous but I went up to $47 on the Strike Price. I received a premium of 65¢ for $650.
Sell to Open 10 WW 1/17/20 $47.00 C @ 65¢ (+$650)
This is a Naked Call so I give it a Risk Factor 4. I’ll watch and Cover if the stock moves higher.
I’m holding 1000 shares of Marvell (MRVL). I bought the stock at $26.99. The stock doesn’t have great premiums but I’m selling Calls while I wait for the stock to make a 5G move. With the stock at $27.10 I sold 10 contracts of the 1/24/20 $28 Calls. I’m not looking to get assigned so I went up to a $28 Strike Price. I only got 25¢, but it’s $250 into my account. If I get assigned I make another $1000 on the stock sale.
Sell to Open 10 MRVL 1/24/20 $28.00 C @ 25¢ (+$250)
This is a Covered Call on previously owned stock so this trade gets a Risk Factor 1.
Earlier I bought 1000 shares of Micron (MU). It’s a hot stock and it received a few new upgrades. Not looking to hold the stock, I bought the stock for a Covered Call. I bought the stock for $57.50 and want to sell a $58 Call for 75¢. As soon as I was filled in the stock buy the stock moved down a little to where I didn’t get filled on my 75¢ premium. Still waiting!
Buy 1000 Shares of MU @ $57.50
As soon as I get filled on my Call I send out a notice.
I’m sorry I’m sending all these trades in one notice but I was very busy doing research and watching for trades to get filled. I didn’t have time to write.
Right now I have 2 trade offers in. 1 to sell a Call on MU and the other is a “Buy to Close” order on PAGS. I have a 20 contract Call I’m trying to dump if I get my price. The Call doesn’t expire until next Jan so I’m waiting for my price.
Make sure you read my reasoning for a trade. This is how you’ll learn. If you have a question send an email.
Successful Trading,
Steve
The Options Coach