Thursday, April 12, 2012


Those readers who followed my lead into VALE, remember - tomorrow (Friday the 13th) is the last day to do the Buy/Write to get the semi-annual dividend of $.5885, or 5.25% annualized (while buying back the Put if it was sold). It has been a fun ride for those of us who sold Puts during the interim; fortunately VALE is up today above (my) strike of 23 on higher energy stocks.
One of the many arrows in the positive quiver of DITM is that - if the Put had gone south in a sane manner (no BPs, please), although you might lose a few $$ on buying it back, you would be buying the stock at a CHEAPER price, and the dividend % would be higher - look at the bright side!
Other semi-annuals to check out coming in May: TEF and VOD (do own research on these, as well as foreign income tax in deferred accounts:
Annual dividends in May include ABB, CS, SNY, STO. Pure "Hummingbird" stocks, no rolling Calls forward.

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