Bond or stock dividends are interesting because they are market discontinuities. Unlike surprising earnings reports, revised analyst ratings, or lawsuits dividends are usually predictable in both amount and timing. You can capture a dividend by just buying and holding onto a investment that offers them, but then you are exposed to the price movements of that instrument.
Advanced Topics
Assumes working knowledge of options and a willingness to learn about new things — like volatility
Vance’s rules for covered call investing
The word “rules” is a bit harsh, but “guidelines” is too soft. Maximum premium is around ATM Buy-writes held to expiration have delta of 0 above the strike, -1 below the strike Don’t mess around too much with bid/ask spreads Don’t use credit / debit orders for covered call transactions unless it is a very slow moving market or if the spreads are unreasonable. Otherwise …
Six Figure Investing—an Overview
The live action is over on the blog tab, but you might be interested in some of the most popular posts I’ve written over the last four years. Trading in an IRA and Avoiding “Free Riding” Taming Inverse Volatility WIth a Simple Ratio Top 15 Questions about Trading in an IRA Top 10 Questions about Dividends Ex-Dividend and Pay Dates for Lots of ETFs Dividend Capture Strategies …
