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Tuesday, April 23, 2024

Comment by phil

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  1. phil

    VIV/Willsons – I like it. Due to the lower stock price ($8.39) the dividend is huge at 0.75 (9.13%) and, at 6x earnings, not very risky.

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    They are not badly damaged this year so a good long-term bet though competition is heating up, especially from Slim's company.  Sadly, they options only go to August so not a lot to do with them but you can Buy 1,000 shares for $8.36 ($8,360) and sell 10 of the Aug $7.50 calls for $1.45 ($1,450) and sell 1o of the Aug $7.50 puts for 0.60 ($600) and that drops your net entry to $6.31/6.905 (if assigned) and called away at $7.50 would be $1.19 comms and 0.375 dividends so $1.565 (24.8%) by August is a very nice play.  Let's do that in our Dividend Portfolio with 2,000 shares and 20 short puts and calls.  

    When we get to Aug, we'll simply buy more stock and roll the short calls to 2x whatever.  

    TAK is nice too but I always prefer the ones people haven't noticed yet.

    $8.5Bn/BDC – Derivatives no matter how you slice them.

    Not too much damage today but not too much volume either.  Doesn't seem like there's strong support if a low-volume day can spike us down like that.



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