re: Dividend Growth Investing

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Make sure to time your buys right with MO.

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What drives all of that volatility besides earnings?

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Recently it was rumored that Altria was looking at selling part of its position in under performing Anheuser-Busch. That turned out to be true, as the company announced that it was selling 18% of its stake. Unusual options activity beforehand suggested that something was going on. Then Altria announced that it was increasing its share buyback to $2.4 billion. From that initial rumor until now, the stock has gone up roughly 10%.

I’d been an active put seller when MO was hanging around 40/share. Most of my strikes were in the 39-39.5 range. My aim was (first) to generate premium income as IV was slightly rising, but also to increase my position at prices that I found attractive. Unfortunately, none of those puts were assigned. (sad face)