Back from Hawaii after a two-week vacation – find myself very underweight equities. When I left the VIX was very low and valuations were very high – the situation have improved a little, so I made the following trade:
- Sold: Eighteen (18) Nov 17, 2023 Puts at $1.05
- Strike Price: $70.00
- *Premium Collected: $1890.00
I sold the Puts at the money because I want the shares. My entry price would be *$68.95. SCHD pays a 3.78% dividend that I will start collecting in December 2023 if I am put the shares, so that would add approximately another $1,200.00 to the trade.
SCHD has not had a good two years, but I am betting it’s dividend strategy is due for a comeback in 2024.
*Excludes transaction costs.
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