Buy HNZ @ 46.50 SCO Sept 47s @ 1.50 Prices at the natural as of 04/20/2010 3.06% dividend. Sub-Industry: Packaged Food & Meats Objective is to augment dividend income, but if it gets called that's ok too.
HNZ@46.50 Sept 47 buy/write vs Sept 45/40 bull put spread (dividends included) ...........Buy/Write...........Put Spread.....Prob> 35........(916)....................(400)...........99% 37.50....(666)....................(400)...........98% 40.........(416)....................(400)...........94% 42.50.....(166)....................(150)...........78% 45..........224.......................100............62% 47.50......284.......................100............42% 50..........284.......................100.............22% ------------------------------------------------------- Req:.......4500......................400 Yield:......5.2%......................25% Ann:........7.6%.....................37% Hide the extra $4.1 K in a money market fund. With HNZ as extended as it is you're more likely to lose money than make it. http://finance.yahoo.com/q/bc?s=HNZ&t=5y&l=off&z=m&q=c&c= you should have done the Buy/Write with HNZ under 40
I should of bot IBM at 12.50 in '93 but I didn't(Post splits) If all I do is collect dividends and premium for a while I'm fine with that.
right in there spin...do you do anything else but watch these threads all day??? I would be glad to receive advice and alternate trades from anyone... but that has never been offered. But then I stopped posting here since i found another way to keep track of my trades. The alternate trade I offered was in good faith and good manners and I got a rude smart-ass reply as usual to the board in general: BITE ME
I was not seeking admiration or advice. I was merely sharing what I believe to be a conservative strategy.
Can't hate, it's a relatively safe play, as long as you do not mind holding HNZ incase it drops below $44. Either way if it's below $44, your still collecting a dividend + you could keep on selling calls.