Friday, December 31, 2010


I just closed out my profitable Mattel (MAT) position after holding it for 1 month. As mentioned earlier, I'm trying a new variation of DITM - capturing the annual dividend instead of just the quarterly, securing the payment by writing a call 3-4 months out in case of a dividend play against me.

Nov. 29 -Bot 500 MAT ($25.54) - $12780
Sold 5 April 24 calls - $1051
Closed out Dec.31, (at same stock price),net $224 after commissions, 1.75% for a month, 21% annualized.
Thanks to Harry Domash's sharing a huge list of annual dividend-paying stocks from his excellent Dividend website, I have many more to choose from for this plan - laddering 1 a month (12)will get me annualized.
With Sentiment (my other passion) indicating a flat to down nearterm future, I am closing out and not opening positions now - a sharp downdraft is perfect for future DITM investing: lower stock prices, ergo higher dividend %s, and higher Implied Option Volatility (premium).
A prosperous 2011 to all, starting tomorrow !

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