Dividend Investors Club – PRO
Options can be a great source of income for long-term dividend investors in any market environment and our Triple Income Portfolio subscription is 100% dedicated to do-it-yourself dividend investors (i.e., all of our Option trades involve high-quality dividend stocks).
As long-term dividend investors, our goal is to maximize income while also protecting and maintaining our capital base. In our opinion, options are a great tool to help you stick to your investment plan and conservatively enhance income. This Option Ideas newsletter is primarily focused on providing Cash-Secured Put and Covered Call trade ideas within the context of a long-term dividend portfolio.
In general, option trades are short term in nature. That said, we will often recommend several options for a given stock with various expiration dates (ranging from a few weeks up to 6 months) and strike prices. Investors should focus on trades that best fit their risk tolerance and should weigh how long their capital is tied up in a given option to generate the stated premium yield (i.e., a 2.0% premium yield over 30-days is different than a 2.0% premium yield over 120-days).
Our Option strategies will not make you rich overnight. Similar to managing a dividend stock portfolio, investors should have realistic return expectations when implementing option strategies. In general, we try to target opportunities that generate an average yield of 0.5%-1.5% per month (through a combination of dividend income and option income).