If you’re like me, your main goal is to keep the income rolling in with a solid set of yield plays — but that doesn’t mean getting complacent once you’ve got your dividend portfolio in place. Rather than ignoring the short-term swings in the broad market, a smart investor pays attention and looks for opportunities to boost his income stream, which sometimes means thinking outside the box. In addition to your typical buy-and-hold positions, I recommend you always stay on the lookout for new strategies that can complement the dividend payers you may already own.
Today I’d like to show you how you can manufacture an instant “dividend” for yourself by trading an up-and-coming Internet stock. Let’s get started. TrueCar (TRUE) is a hot, newly listed Internet company that has permanently changed the car-buying experience for consumers with its negotiation-free car buying and selling platform. But what I’ve got in mind for TRUE is more of a short-term trade in which we create income for ourselves in the form of option premium, by executing a “buy-write” on the stock. In other words, we’ll purchase (buy to open) the shares and “write” (sell to open) calls against them. Here’s the trade: For every 100 shares of TrueCar (TRUE) you own or purchase at market, “sell to open” 1 TRUE Sept. $25 call for a net debit of $22.50 or less.
Source: InvestorPlace
Related Articles:
- Here's Where To Find Great Dividend Stocks
- 8 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 10 Dividend Stocks For The Ultimate In Deferred Gratification
- 6 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- Why We Are Dividend Growth Investors
Pay Yourself First With This Clever Income Strategy
Posted by D4L | Wednesday, September 24, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.