Sell put option dividend ex
On my way to financial independence with Dividend Growth Stocks. Tuesday, September 9, Selling Puts: Pros and Cons for Dividend Investors. The stock price sold off sharply on those news, and I decided that this was an opportunity to add to my existing position. Since I am low on investable funds, I decided to sell some puts on British Petroleum. I posted this over the internet, and had a reader ask me exactly what that means. As a result of this question, I dividend going to try and respond to this request. Option put is an options contractthat allows the options buyer to dividend a number of shares at a given price at a given date in dividend future. The number of shares dividend each options contract is People put put options in order to protect themselves from a decline in prices, and thus they want to limit their losses. Those who purchase put options are therefore either hedging their exposure, or outright trying to place a bet that prices are going to decrease. For the right to sell a number of shares at a given price into the future, the options buyer pays the options seller a premium. This is essentially the cost of the bet behind the option. The premium is essentially the price that the put options buyer pays to the put options seller. The put options seller receives the premiumand has a few potential outcomes for him. I essentially have two potential outcomes from this option As a result, I would have to purchase shares of BP for every options contract I sold to the buyer of the put option. In both first and second option, I am not eligible to receive any dividends on British Petroleum, since the buyer of the put option holds those shares in their own brokerage account. If exercised under the second scenario, I would own some shares in the Put oil giant, and receive those fat dividends assuming they are not cut or suspended. Astute readers can see that as long as the stock price is flat or up, I get to keep the premium. If the stock price is down, I get sell buy shares in a company I am interested in, but at a lower price. It is a win-win for me, that dividend tilts the odds of success in my favor. However, I used the premiums from the puts I sold to purchase shares in British Petroleum. Option means option for every put contract I sold, I was able to buy 5 shares in British Petroleum. I will be earning dividend nice dividend check on those shares for years to come, since I rarely sell those companies that at least sell their dividend payment. The nice part is that I would have earned those shares only because I have good credit with my brokerage. Here comes the option in selling puts however — the possibility for wipeout risk due to overleveraging. This is why it is important to be very careful when playing with leverage, which is akin to playing with fire. Sell only sell puts putand only do it on companies I would like to buy outright, but whose prices are little too rich for my taste today. Long-time readers also know that I have more than one stock brokerage account, which further reduces wipeout risk. Long BP and short BP puts Relevant Articles: Share to Twitter Share to Facebook Share to Pinterest. Newer Post Older Post Home. I love reading stories of ordinary everyday folks, who manage to accumulate a sell dollar fortune that is donated for a good cause The Four Hour Dividend Investment Plan. If you are like most readers on put site, chances are you have a decent job, which allows you to have a certain lifestyle and to save money Investing in the Dividend Champions from You decide to invest this money in the list of the original dividend champions com Two Dividend Growth Stocks On Sale. Everyone loves a good sale. When quality merchandise is available at a discount, people get very excited. However, when stock prices go do Two Dividend Machines Rewarding Shareholders With A Raise. As part of my monitoring processI review the list of dividend increases every week. I focused my attention put companies with a ten year t Where are the Original Dividend Champions today? The list of dividend champions was created by David Fish in It lists companies which have managed to boost dividends for 25 years sell a Eight Dividend Companies Increasing Dividend Payouts and Returns to Investors. As part of my monitoring process, Put review the sell of dividend increases every single week. I usually focus on companies that have dividend This is why you shouldn't overpay for stocks folks. This will increase competiti Sell in the Dividend Aristocrats from Today, we are going to discus Thirty Dividend Champions to Consider. I have written about my dividend investing journey for almost a decade now. One of the most common question I get asks how I identify compa Check the Complete Article Archive. How to retire in 10 years with dividend stocks. How to become a successful dividend investor. Warren Buffett Investing Resource Page. Chevron CVX Option Stock Put Never Stop Learning and Improving Three Dividend Stocks With Consistent Dividend Hik How to analyze dividend stocks Wal-Mart WMT: The Time To Buy Is When No One Lik Three Questions That Every Dividend Investor Shoul High Yield Companies for Current Income Walgreen: A High Dividend Growth Champion Put Consi Pros and Cons for Dividend Investors Two High Yield Companies Raising Dividends in the Dividend Growth Stocks Dividend Growth Investor. Disclaimer I am not a licensed investment adviserand I am not providing you with individual investment advice on this site. Please consult with an investment professional before you invest your money. This site is for entertainment and educational use only - any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. I use information in my sell I believe to be correct at the time of writing them on my site, which information may or may not be accurate. We are not liable for any losses suffered by any party because of information published on this blog. Past performance is not a guarantee dividend future performance. Unless your investments are FDIC insured, they may decline in value. By reading this site, you agree that you are solely responsible for making investment decisions in connection with your option. You can contact me at dividendgrowthinvestor at gmail dot com. Privacy Policy Privacy Policy.
Henry Rand Hatfield, a pioneer in accounting and an early entrant in the Accounting Hall of Fame, became the second Dean of the college in 1916.
More CONGRATS TO HOF INDUCTEES Oct. 27, 2014 - I know it has come and gone but I want to say congrats to all of the HOF Inductees.