Tuesday, June 10, 2014

Review of nyse::Who Founded the New York Stock Exchange?







Review of nyse::Who Founded the New York Stock Exchange?








With               a               review,               one               may               find               many               stocks               worth               investing               in               offering               dividends.

Also,               dividends               can               be               a               very               good               and               steady               source               of               revenue               and               with               each               dividend               payment               received;               investors               continue               to               lower               the               original               risk.
I               am               interested               in               dividend               capturing               primarily               for               the               dividend,               but               there               is               also               a               chance               the               price               could               fall               enough               that               I               end               up               owning               it               for               longer               than               planned.

As               a               result,               I               must               be               sure               this               is               a               company               I               would               not               mind               holding               onto               for               a               while.

If               I               am               not               willing               to               own               a               dividend               paying               company               if               the               price               falls,               I               will               pass               and               move               on               to               one               I               will               be               happy               holding.

There               are               many               dividend               capturing               tactics,               and               I               have               executed               trades               in               my               quest               for               dividends               in               various               ways.

I               will               describe               one               of               my               favorite               and               easy               to               understand               methods               of               making               gains               through               options               and               dividends.

All               while               knowing               if               the               shares               fall               in               price,               I               will               be               comfortable               owning               shares               for               a               longer               period.
The               Kroger               together               with               its               subsidiaries,               operates               as               a               retailer               in               the               United               States.

The               company               also               manufactures               and               processes               food               for               sale               in               its               supermarkets.

The               company               was               founded               in               1883               and               is               headquartered               in               Cincinnati,               Ohio.
Kroger               Co               (NYSE:KR)
Yield:               1.95               percent
Dividend               Amount:               $0.12
Ex-Dividend               Date:               May               12,               2012
Beta:               0.40               I               review               many               call               strikes               and               estimate               the               expected               probabilities               based               in               part               on               Beta,               Bid,               Offer,               Volume               traded               the               current               day,               open               interest,               and               time               value               /               implied               volatility.

Call               options               offer               some               protection               from               possible               adverse               moves               in               the               stock               price               and               provide               offset               revenue               when               the               options               do               not               fully               cover               down               moves               in               the               stock.

Income               is               welcomed,               but               not               needed               from               option               premiums,               so               a               break               even               from               option               premiums               received/stock               losses               ratio               is               a               win.
               I               generally               hold               any               given               position               with               a               yield               of               1.95               percent               and               dividend               of               $0.12               for               about               10               days               depending               on               the               timing               of               the               option               expiration               date               and               the               day               of               the               week               of               the               ex-dividend.

When               learning               a               new               trading               strategy               it               is               better               to               use               a               simulated               trading               account               first.

It               is               easy               to               make               mistakes               when               starting               out               on               a               new               strategy               and               mistakes               cost               a               lot               less               with               a               simulated               account.

After               a               level               of               confidence               is               built,               then               it               may               be               time               to               move               into               a               real               money               account.Kroger               Co               upcoming               stock               dividend               appears               to               be               attractive               and               worth               the               time               and               effort               to               capture.

A               requirement               I               have               is               be               able               to               sell               a               call               option               in               either               the               front,               or               first               back               month               that               is               in               the               money,               and               with               enough               premium               that               I               will               not               object               to               an               early               exercise               notice               (which               does               happen               from               time               to               time,               but               profitable               if               everything               is               done               according               to               plan).
               Strategy:               
               In               combination               with               my               buying               Kroger               stock               and               after               checking               company               updates,               offer               to               sell               the               May               $23               strike               price               or               lower               call               for               $0.32               over               the               intrinsic               value.

The               option               may               get               exercised               early               for               a               gain.

In               almost               all               cases               I               will               sell               the               call               option               first               to               ensure               the               stock               option               leg               is               complete               first.

If               not,               after               qualifying               for               the               dividend,               I               will               look               to               close               out               the               covered               option               with               a               gain               of               about               about               $0.12,               plus               the               dividend               received.

It               is               important               to               sell               the               call               option               hedge               at               or               near               the               asking               price               for               at               least               the               minimum               amount               over               intrinsic               value.

I               will               not               want               to               try               putting               on               the               hedge               unless               the               sale               of               the               option               (hedge)               will               provide               at               least               the               full               $0.32               over               intrinsic               value.

If               my               shares               get               called               away               the               day               before               they               trade               ex-dividend               as               a               result               of               the               option               buyer               wanting               the               dividend               I               will               make               about               $0.32               Not               all               that               great,               but               not               bad               for               about               a               week               of               owning               the               stock.

The               most               I               can               make               is               $0.44               if               I               hold               the               covered               call               through               option               expiration               day               and               the               stock               gets               called               away.


               My               last               step               (completed               before               making               a               trade               on               the               same               day)               is               to               check               company               announcements,               and               news               sources               for               possible               events               that               may               cause               the               stock               price               to               move.

This               is               especially               important               during               earnings               season.

Learn               more               about               stock               options               by               clicking               here.
               I               use               a               proprietary               blend               of               technical               analysis,               financial               crowd               behavior               and               fundamentals               in               my               short-term               trades,               and               while               not               totally               the               same               in               longer               swing               trades               to               investments,               the               concepts               used               are               similar.

You               may               want               to               use               this               article               as               a               starting               point               of               your               own               research               with               your               financial               planner.









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