CYS is a high dividend paying stock ($0.34/sh with a dividend yield of 16.77%). It’s ex-dividend date for this quarter is Sept. 20th. I wrote a covered call for CYS today, with the option to expire on Sept 21st. The strike is 7. Current stock price is 8.09. The stock may fall 0.34 at the open on the ex-dividend day which is why I chose $7 as the strike. The concept is to capture the $0.34/sh dividend, while limiting the downside risk.
This is a test of my short term, high dividend and optionable stock strategy. The dividend is paid on Oct. 16th.
About admin
Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
