Forget the banks..et phone home

METFAN · Oct 7, 2020

If you have money just sitting in your savings do this instead today
Sell Oct 30 $5 strike puts for .10 os $10 per option.You will get $10 per option up front and be asked to hold $500 per option in your account
10 Options would be $5000.
You are f
getting 2%up front on a stock that will be issuing a 23% yield dividend a week after the option expires..Honestly I would not mind that option exercising because I plan on buying the stock that week anyway and at that price and dividend the yield would be over 24%.
Grab it while you can

Bruins4Life · Oct 8, 2020

Did I miss something?

What is the stock?

METFAN · Oct 8, 2020

ENERGY TRANSFER

HENCE ET is the symbol.it was mentioned in my other thread

CoachCB · Oct 8, 2020

MF, I'm totally confused w/ your explanation of what to do here:

I'm a novice on call's and put's, etc.

So, pretend you're talking to a 6 year old....and then tell me what I should do here. I have a Charles Schwab account w/ some cash burning a hole in my pocket.

I saw ET closed close to $6 today.

Thank you!

METFAN · Oct 9, 2020

Well unfortunately its down now to $3 per option and lost its value.At this stage your probably better off just buying ET and waiting for the dividend yielding 22%.I am typing this on my phone so be careful of typos.

I do have a very nice play for you.
The very first step is to make sure you have advanced options trading in your account.If not call and ask for it.

There is a nice option play on Northern Oil and Gas.Symbol: NOG
1.SELL TO OPEN
SYMBOL:NOG
Expiration date : Nov 20
Strike Price $4
Put
You should get around .20 per share or $20 per option
For every option you purchase you will be required to hold $400 in your account until Nov 20..

ie 10 options you get $200 but you have to hold $4000
that is 5% for 6 week which is a hell of alot more than you would get from your bank

METFAN · Oct 9, 2020

Any other questions feel free
Just make sure you have those trading privileges

CoachCB · Oct 9, 2020

I don't have those options...so browsing through Schwab, there's an option to apply for options trading, but there's a few different options:

EIAABCAAAQhAAAIQOCMCmIszAkuxEIAABCAAAQhAAAIQmBoBzMXU9jj9hQAEIAABCEAAAhCAwBkR P8BuSNpxSEAGvsAAAAASUVORK5CYII=

CoachCB · Oct 9, 2020

CoachCB · Oct 9, 2020

Here's a screenshot

CoachCB · Oct 9, 2020

Part 2 (this is one screenshot, I had to cut it in half due to the size limits allowed on this site).

so...which one of these options do I request?

Thanks MF!

METFAN · Oct 9, 2020

Level 3 uncovered puts in this case

if they ask you are very experienced..you are really just going to sell basically the same few puts over and over

CoachCB · Oct 11, 2020

Thanks MF! I'll contact Schwab

Bruno2 · Oct 19, 2020

MetFan again as a novice I ask the question about dividend payment for ET. TD Ameritrade listed dividend payment date of November 2020 but now states the below dates? Could you explain? And is ET a stock to hold on to? I know you state you like to make your money and move on. Thank you!

Ex-dividend Date 08/06/20
Dividend Pay Date 08/19/20

Bruins4Life · Oct 20, 2020

In order to collect the dividend, you must own the stock end of day 08/05 20. So prior to the ex dividend date.

The dividend is paid on the 19th.

If you sell the stock before the 19th, you still collect the dividend.
Be aware, the stock usually dips down on the ex dividend date.

METFAN · Oct 20, 2020

The next dividend will be the first week in Nov.
Bruins is right about the dip.Be careful about buying too close to the dividend date as there can be settling delays.I already own mine and have an possible additional 5000 that I sold puts on.The puts expire Oct 30th.Personally I will be putting my shares for sale the opening of the day after dividend which is probably Monday Nov 9th.If you like it as a possible long term investment that gives a pretax dividend over 20%...then feel free to keep it I will continue to sell puts in it.

Good investing

METFAN · Oct 22, 2020

just sold half my stock for a .48 cent gain which is more than the 30 cent dividend

CoachCB · Oct 23, 2020

ET's made a nice little run since you posted.

METFAN · Oct 24, 2020

yes Coach hope you made some money. Waiting for JD and Baba now

CoachCB · Oct 30, 2020

ET is down to close to $5. Any thoughts? I added 500 shares at $5.10.

METFAN · Oct 31, 2020

I still have 2000 left.It might have waited to see what happens on their Wednesday earnings call.They missed the last by 15 cents.This Q the estimated is 24 cents.I plan on keeping the stock for a yr and get my dividend unless it hits $6,
.50.IF it dips under $5.I will buy 2000 more and sell them at market the day after the dividend at 9:30 sharp.
Hope that helps Voach.Enjoy the weekend.

Forget the banks..et phone home

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