It felt good making one of my normal trades this week. The kind of trade I’ve made for many years, bringing in a lot of cash. I’m slowly crawling back into the game I love. I’m still not ready to dive back, at least not until the political landscape establishes a direction for the market. Don’t get me wrong, I think the market has been moving nicely but with the election upon us who knows where Wall Street can go. At the moment I like the moves the markets are making and I like the earnings reports, especially tech. However, the Dow has been moving great.<\/p>\n
I have been making some very small trades, bringing in some small premiums, and buying small pieces of high dividend stocks. The high dividend stocks I’m in right now are: VF Corp (VFC), Medical Properties Trust Inc. (MPW), Neuberger Berman Next \u00a0Generation (NBXG) and Pimco Income Strategy (PFN). Out of this group the only flop is VFC. I bought 200 shares at $25.65 with a 7.9% dividend (51\u00a2 quarterly). A month after I bought the stock the company reduced the dividend from 51\u00a2 to 30\u00a2 and the stock went down. The stock closed this week at $19.60 and my dividend is now only 4.67%. It’s only 4.67% but it is something. They were just approved for their next dividend in Sept. I’ll take it!<\/p>\n
My other dividend stocks are doing a great job. However, when investing in high dividend stocks you never know when the dividend will be reduced or completely dropped.<\/p>\n
This week I own 200 shares of Cloudflare Inc. (NET) at $67.10. I owned 100 shares for a few weeks and sold Calls against them. Last week I bought another 100 shares. I sold 2 contracts of the Aug 4 $70 Calls which expired on Friday. It was a little nerve wracking because the company was reporting earnings on Thursday. I sold the Call because the stock was a little below where I bought it and I was going to hold the stock. I figured if I’m going to own the stock I might as well sell a Call and take advantage of the high premium because of earnings. I would not have bought the stock just to sell the Call with earnings imminent. I did feel good that this cloud stock was going to beat the street.<\/p>\n
I sold 2 NET 8\/4\/23 $70 Calls for a premium of $4.30. This is a 6.4% premium for the 1 week trade which was $860. Like I said, if I didn’t already own the stock I would not have made the trade. Getting into a trade knowing big news is coming is a gamble.<\/p>\n
7\/31\/23 \u2013 Sell to Open 2 NET 8\/4\/23 $70.00 C @ $4.30 (+$860)<\/strong><\/p>\n 8\/4\/23 – Expired 2 NET 8\/4\/23 $70.00 C<\/strong><\/p>\n With this $860 premium, which was free money, I bought shares of my high dividend stocks, other than VFC. I bought another 30 shares of MPW. I now own 1735 shares and this stock gives me a dividend of 10.6% per year. I bought another 20 shares of NBXG. I now own 535 shares and this stock gives me a dividend of \u00a012.2% per year. NBXG pays a monthly dividend. And I bought another 50 shares of PFN. I now own 300 shares and this stock also gives me a dividend of 12.2%. And this stock also pays their dividend every month.<\/p>\n I think the $860 premium went to good work. Hopefully they all keep their dividend going. I just received the monthly dividend for NBXG and PFN at the end of July and they were both approved for their normal dividend at the end of August. MPW is a quarterly dividend and is not due until October.<\/p>\nProfit +$860<\/strong><\/span><\/h4>\n