At-Risk “Dividends”

Posted on Feb 2 2017 - 2:56pm by Sharpe Trade

So for those following along in my personal StockTwits stream, after closing down my Facebook (FB) long and AMPH short profitably, I am still long PGX, long SYNT, long LOW and short BLDR.  These trades are turning against me just a bit.  All told, at the moment the long / short portion of our book is up + 0.62 % YTD.

So to give myself a little ‘staying’ power, I found some OTM GLD puts to sell this morning.  In a way, I view option selling as a way to generate a bit of ‘at-risk, at-will’ dividends for the account.  In other words, it gives me a bit of padding in the way of incoming capital.

Of course, the market can meander about however it will … but now I have a little more ‘staying-power’ with the rest of my trades …

How are we finding these trades?
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1 Comment so far. Feel free to join this conversation.

  1. mappy February 3, 2017 at 9:58 am - Reply

    America is safe again! DOW back above 20K!

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