tag:blogger.com,1999:blog-6097510160054715524.post4644049006724928546..comments2024-01-03T21:42:28.979-08:00Comments on DivGro: Options Update: December 2016FerdiShttp://www.blogger.com/profile/05008021146951839361noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6097510160054715524.post-57065549915850947312016-12-26T19:01:21.201-08:002016-12-26T19:01:21.201-08:00Yes. I'm planning to move my FolioInvesting ac...Yes. I'm planning to move my FolioInvesting account to Interactive Brokers. I have not closed out positions early for the very reason you mention. That's not good. I can't wait to move to IB!FerdiS, DivGrohttps://www.blogger.com/profile/07330193431527796718noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-26350604846649882982016-12-26T18:58:28.451-08:002016-12-26T18:58:28.451-08:00Thanks, Investment Hunting -- I'm enjoying thi...Thanks, Investment Hunting -- I'm enjoying this adventure and I like seeing more and more dividend growth investors also getting into options. FerdiS, DivGrohttps://www.blogger.com/profile/07330193431527796718noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-45783138727439534472016-12-26T18:09:23.712-08:002016-12-26T18:09:23.712-08:00Great job Ferdi. I love reading posts about option...Great job Ferdi. I love reading posts about options. You're doing so good with it.Anonymoushttps://www.blogger.com/profile/15330040244289368427noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-43025115838563362002016-12-26T13:08:21.355-08:002016-12-26T13:08:21.355-08:00Your options commissions seem high. I'm at In...Your options commissions seem high. I'm at Interactive Brokers and pay usually 70 cents a contract. A similar deal is available at Options House (which I've used and liked.) If you are going to continue to close out positions early (incur two commissions per trade), I think it makes sense to shop brokers. Fifteen bucks round trip on a 150 dollar premium is a ten percent drag!Financial Velociraptorhttp://velociraptor.ccnoreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-9794251245359254422016-12-26T10:19:23.119-08:002016-12-26T10:19:23.119-08:00I'll have to see what works and what doesn'...I'll have to see what works and what doesn't. Sometimes it helps to go out further with expiration date, but that's not always the case. FerdiS, DivGrohttps://www.blogger.com/profile/07330193431527796718noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-23173445587218852272016-12-26T10:15:50.788-08:002016-12-26T10:15:50.788-08:00Thanks, Mike -- I appreciate your comment and supp...Thanks, Mike -- I appreciate your comment and support. I find writing these updates to be helpful for myself (to clarify my thoughts) and I'm happy if my readers find them worth the read, too!<br /><br />Take care and happy investing!FerdiS, DivGrohttps://www.blogger.com/profile/07330193431527796718noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-64432327969884429022016-12-26T09:55:35.814-08:002016-12-26T09:55:35.814-08:00Fantastic post and fantastic blog. Thanks for the ...Fantastic post and fantastic blog. Thanks for the clear explanations about your options strategies. There is always something to learn from your posts. Keep up the great work and all the best with your new positions!Mikehttps://www.blogger.com/profile/12441412095055039796noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-85998580727395592532016-12-26T09:45:17.892-08:002016-12-26T09:45:17.892-08:00Yeah I agree- becoming overly concentrated wouldn&...Yeah I agree- becoming overly concentrated wouldn't be good. I just find it a nice area for options, like a sweet spot between volatility and premiums. In some other sectors, I rarely bother with options because the premiums are so low, and tend to just hold companies without options. Lynhttps://www.lynalden.comnoreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-63606947697925715192016-12-26T08:02:26.144-08:002016-12-26T08:02:26.144-08:00Thanks for commenting, Lyn -- yes, I'm often s...Thanks for commenting, Lyn -- yes, I'm often surprised to see the premiums available for technology stocks. It almost makes me want to focus on those stocks! But that would be putting the cart before the horse, because DivGro is firstly about "generating a reliable and growing dividend income stream" and secondly about boosting dividend income with options trading. FerdiS, DivGrohttps://www.blogger.com/profile/07330193431527796718noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-46057469273106473642016-12-26T06:18:52.035-08:002016-12-26T06:18:52.035-08:00INTC is a good one. I recently sold virtual put o...INTC is a good one. I recently sold virtual put options on it for my newsletter portfolio. I did the same strike price ($35), but at a later date.<br /><br />Those boring mature blue chip stocks like INTC, QCOM, CSCO that have often have long sideways stock prices are great for option-selling, because you can just collect tons of income from their wide-moat slow-growth business operations, and yet their option premiums are higher than some other sectors, like the typical blue-chip consumer defensive companies. Lynhttps://www.lynalden.comnoreply@blogger.com