I do it by the week, I mean I have alot sitting on the sidelines bc I've had a great year at work and all the stocks I wanna buy are higher than Id like to pay, well except for PM but I already have way way too much. I literally sell the puts on down days or friday(bc i get 2 free weekend days of time decay) and hope for an expiration. If you sold $175 for next friday it was $1.10 yesterday, nice profit. I have to be a little cautious this week bc I have a few contracts at $185 put I sold a month ago for $3.42 when it was $190 and then when the price fell apart I've been stuck with it for a month and it looks like I may take delivery next saturday which I don't mind bc $181.58 is a great price I believe.
Read this link from Visa and have confidence in the future
a.2 Billion cards in circulation
b.6.7 Trillion a year in transactions
c.150 million transactions a day!!!
d.growth every year since ipo LINK
you own a piece of all that!!! With a company that has 0 debt,an industry with only 20% world penetration, a massively growing percentage wise dividend and 47.24% net profit margins! I honestly in my heart believe that over a 30-40 year time frame this stock with no debt combined with share buybacks will be the stock people mention like I had 5 shares of coke in 1959 and Im worth $5M today. With that balance sheet they are going to eliminate so many shares and raise the dividend very very quickly as time moves on. Just think of all the things like Amazon,Ebay,Itunes store, and more all those are paid for via credit card only. Cash is dead, I literally have 10-15%/day of sales in cash at work and that's bc you have to pay for lottery in cash. I wish it fit into my retirement plans within the next decade, I own some for the future generations I'll leave when Im gone but the dividend just isn't enough for me to retire on!
and Ace....a 1-2% profit on a put is terrible, think about it, if you sell $180 put for next friday at $2.69, your profit is $269, 2% of that is $5 lol. On the other hand if it expires you profit $269 on an $18,000 investment in 7 days which is 1.49%/week....now do that for 52 weeks in a row and you'll be a rich rich man haha seriously $18,000 compounded at 1.49% a week in 5 years is almost $850K just did the math....of course if I could return 1.49%/week I wouldn't be working haha, but I've only been doing this for maybe 2 months, and its doable but you're gonna need a helluva hot streak, but there are weeks youre going to get put the shares but youre still gonna profit, it may hinder your ability to sell a put for the following week though. You could be a little more conservative and sell the $175 put for $1.10 and make 60% less, but still .5%/week
This post was edited on 8/10 at 10:07 am