Put It to me! BP

A 7% yield, a price not seen since early 2018. The U.S economy is doing well. This is not to say we are not subject to a pullback. However why not have a dividend while you are waiting for the price to increase. Forty three years ago I worked for BP, so they have been around and will continue despite the oil price dropping. You see the strategy is cut production as price lowers so the price moves back above cost.  LOL

Boy they are in control of that. So this morning as the world looks frightened about the opening we are suggesting you sell the BP $32.50 PUTS at opening. If it’s put to you, you’ve got a great price and a strong dividend.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Less than 60 days, 9% on MCD.

On 11/11/19 we made a call on MCD. WE suggested selling PUTS on MCD that would have placed you in the stock at $190. Well as we stated the MCD consumer is strong. Despite the fact that the former CEO was dismissed, we stuck with our call for owning MCD. This morning we hit $207.80. Not bad from our original call on 11/11/19.  This is a 9% move and we continue to sell calls against our MCD position. It pays to be a member at optionsdojo.com , for as little as $39 per month you too can be a member of our winning family.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Call me when you are in range!

How many times have you felt like your coverage is poor? The majority of coverage is provided by AT&T and Verizon.  WE are looking at AT&T or T (symbol) because the dividend is north of 5.25%. If the market slows down the rates will not be taken up by the federal reserve. So 5.25 % is not a bad dividend. Not to mention that you don’t need much of an increase in price to give you a decent return. So our selection is to SELL the January 10, 38.50 PUT.  This will put you in the stock at roughly $38.15, your dividend will yield 5.35% and then we will sell calls if the stock is PUT to us.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

How long will the newborn sleep?

If you have ever had a newborn baby you desire sleep. When you put the baby down you have no idea how long the baby will sleep. This is how we feel when the market has days like today and Friday of last week. How long will this political unrest be awake? The real question is, do you believe in the LONG term that markets go up? Historically it has been proven that given enough TIME the markets rebound. So what tool do we use when dealing with time?  Well, we can use share cost averaging, buying more shares to take our average price per share down. We can also learn to use options.  We can learn to hedge our portfolios for days like today. No one has the crystal ball to see when the BIG correction is coming but following a hedge strategy all the time can create income, lower cost, and avoid large losses.  Our Sensei is on it this morning and will be advising our members (only) of what needs to be done. Join today!

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Negative Day, WOW

So what do you do with a negative day? We evaluate our positions and make sure we are where we want to be. It’s a good day to dollar cost average, it’s a good day to sell some PUTS if the stock moves down and it’s a good day to see opportunity open the door to a rebound. We see today as selling for tax reasons. We don’t have an issue of less business, the economy is showing strength and so we move to take advantage where we can. It is for this reason that today we are selling some QCOM puts, we are selling the January 3rd, 87 and the 86’s.  Last week we sold the 88 and the 87 and both were winners. We also see a slight pullback in FB and we are selling the January 3rd, $202.50 PUTS. We believe we will see continued growth due to the political ads flowing through FB long term.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Is the Hype worth the price?

QCOM is the firm that is projected to profit from the explosion of 5G. As a chip maker that focuses on the wireless market we believe that QCOM is set to take advantage of the 5G market. As most of its revenue is on patents we believe they will be acquiring additional revenue as new devices come online, as the gaming community continues to grow, and as even the layman wants more speed.  We are selling the December 27, $88 PUTS and the December 27 $87 PUTS.  If the stock is PUT to us we will be dollar cost averaging. If only the $88’s are PUT we lower our cost basis with additional premiums from the $87s.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Mac or Microsoft?

A number of years ago I bought my first Mac, however I quickly learned that some programs will not work on my Mac.  So I still use Windows based computing programs. With this in mind we see that AAPL is near it’s high and so is MSFT. We believe that MSFT will continue to grow based on services they provide known as hybrid cloud services and they are dominating that market. As we see a slight decline we are selling the December 20, $155 Puts. The positive news out should push the stock back up. It’s currently $154.60.  As for our love of Mac we continue to be a fan of AAPL, so we are selling the December 27, $280 for $2.70. This puts us in AAPL at $277.30. We find AAPL is well financed to support their dividend as well.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Tip Toe In!

As we are at year’s end, you should be looking to tax manage your account. In other words selling losers (if you have any) to offset winners. For those of you who have been concerned about staying in the market or getting in at these levels we make the following suggestions. For those of you that hold stocks you may want to continue to sell calls against your positions. For those of you who have had some concerns about entering at this level we suggest selling PUTS one week at a time, roughly 5% below the current price of the stock.  This allows you to get the stock at a lower price and get paid without actually owning the stock. We are holders of IWM (etf), AAPL, FB, QCOM, and NVDA to select a few. We continue to sell calls against these positions and we suggest that if you like these positions you sell PUTs 5% below the current price. We will see some selling as investors rebalance, tax harvest and liquidate for the holidays.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

No room for my legs and I’m under 6 feet tall.

The only reason the airlines can continue to get away with this is due to the heavy traffic. It seems that everyone wants to travel somewhere.  On a recent trip across the midwest I noticed that people are willing to put up with crowds and crowds are wanting to fly. It seems that young people are not concerned about retirement but the experiences of life. So rather than opt to start a Roth IRA they are traveling the world. It is for these reasons we are playing BA two ways this week. As this Friday is the 13th we approach with caution. We are buying BA at the $350 to $352 level and selling the December 13, 350 calls for $4.50 to $5.00.  We are also selling the December $340 Puts.  The put will bring you $70 per 100 shares and is the more conservative play as we don’t see the stock drawing back down that far.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Best In Show, the bulldog.

When you are picking team members you want the best available at the time. Now no guarantee that if you draft the best player that they will perform, however the odds are usually in your favor. It is for this reason we are looking at JPM, selling the December 6, 129 PUTS. We have a slight pullback this morning and we believe in JPM long term. We are also seeing some movement in FB, still a major player in the acquisition of information, especially all the advertising over the holidays, so we are selling the December 6, 195 puts. We have seen BA come down some but we believe the holiday travels will add to many bottom lines, so we are also selling the December 6,  352.50 Puts. You may ask why all puts at the moment, well we want the stocks we like to come to us. Being up above 28,000 on the DOW we are patient investors. Keep abreast of any changes during the week. As numbers come in from the shopping holiday we will take advantage of big moves either way.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.