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What do we trade

You can read about our trading strategy on our Strategy Page to find more details on what we trade. But here it is in a nut shell:

1) We buy dividend stocks. We strive to buy high-quality dividend growth stocks, but we also do our research and buy good quality dividend stocks (not necessarily dividend growth stocks) for income, such as ETFs, or CEFs. We hold the dividend growth stocks forever (unless they cut the dividend). The dividend non-growth stocks are speculative. We hold them for income but if they fail to meet our criteria, we sell them too.

2) We accumulate these stocks, slowly, one by one, to reach 100 shares of each.

3) We sell puts against the stock positions on our watch list. These are stocks we either already own or want to own. We sell naked or cash-secured puts.

4) We sell calls against the stocks on our watch list. Once we reach 100 shares of our desired holding, our calls become covered, otherwise, we trade naked.

5) We sell puts and calls together creating a short strangle to collect premiums and we try to let the strangles expire. If any side of a strangle gets in danger, we roll the trade. If the trade is covered, we let it assign if we cannot roll.

6) We use all premiums and dividend proceeds to buy more shares of the dividend stocks.

7) Sometimes we engage in trading butterflies and ratio spreads but that is rare. We also trade poor man’s covered calls using LEAPS and selling covered calls.

This strategy allows us to generate 30% – 45% annual revenue on invested capital. If this strategy is appealing to you, you can subscribe to our free newsletter.

If you subscribe you will:
a) receive an email anytime we open a new trade
b) we roll a trade
c) we close a trade
d) receive an email notifying you about our weekly report showing how we did in the prior week trading options, receiving dividends, what stocks we were accumulating, and our market outlook.
e) receive an email notifying you about the stocks of our interest we plan on accumulating in the next month.

And, if you do not like what you see, just unsubscribe.

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