Old Man Stocks Tread Water
Updated: Mar 15, 2022
BULLS: Continue to hold select dividend stocks. I'm hedging the overall market via puts and and other option strategies. However, the dividend checks are a focus for me. Get paid to hold the risk. Oil stocks got punched in the face on Monday after an epic rise in recent weeks but that trend is far from done. Here are a few old man stocks to consider. CVS Health Corp (CVS). It has a 2.1% yield. Iron Mountain has held up well. Ticker (IRM) It boasts a 5.2% yield. KMI, XOM, WMB are still important energy suppliers to the world and will continue to be for years to come. Another theme I'm sticking to are shipping and dry bulk companies. ZIM integrated Shipping Svcs (ZIM) is a light container shipping company that provides cargo solutions for all industries. The company has been in existence for many decades but it debuted on the New York Stock Exchange in January 2021, with the support of Citigroup, Goldman Sachs, and Barclays. They will be shipping dividend checks of $3400 dollars in the next few weeks for $20,000 invested. Technically speaking, the stock is not actionable at this time, but the trend has been stellar. Since last March, ZIM has returned 254% compared to Tesla's 11% during that same time period, and that's not accounting for the massive 22.9 percent yield. A foreign tax will be applied since ZIM is based in Israel.
BALLERS: It's important to keep engaged in the markets during draw-downs such as we are experiencing now. The fatal mistake of most investors is ignoring charts because all of the nasty pullbacks. A key discipline of a technical trader is daily visualization of charts. Growth stocks Google, Microsoft, Nvidia and Alpha & Omega Semi (AOSL) have been out of favor but have found their way on my radar. Microsoft has some pretty huge option volume for April. If you have the capital, April naked puts can pay you fairly well so can straight calls. Say for instance you sold a single April 280 put, you would potentially reap $1000 or own 100 shares of the stock at option expiration. That type of a trade right now does not come without risk. It's very possible that the overall market still has another leg down, so you would need solid conviction to do this trade. An April 275 single naked put contract would generate $800 in income. Both SPY and QQQ are sitting perilously on technical support. Investors/Traders will have to see how the plethora of geopolitical problems play out.
Comments