COVERCALL/BUYWRITE: If there is any stock that your waiting on it to get to a target price before you sell consider this strategy. Sell a call options against shares of stock in portfolio. Selling a call option will create a credit to brokerage account (premium), that premuim represenst the cost the buyer is willing to pay you to hold a contract that allows them to buy 100 shares at a set price prior to expiry of the contract.
Example: I have 100 shares of ait at 26 and a target of 31. I can put in a limit order to sell at 30 (my target) or sell 1 30 feb call for 1.75 (thats a 30 strike, febuarary expirary). Price goes up (past 30) - you recieve 31.75 per share as the stock gets called away from you. Price stays the same- you make 1.75 and continue to hold the stock. Price goes down- you make 1.75 and you loss money in the stock you still hold... Can you say Win-Win-Win situation...
Also: per our converation a few nights back I found a good ETF for you: PFM
PowerShares Dividend Achievers Portfolio is an exchange-traded fundincorporated in the USA. The Fund seeks investment results that correspond to then Broad Dividend Achievers Index, which tracks stocks that have increased their annual dividend for 10 or more consecutive fiscal years.
Their top 10 holding
Wal-Mart Stores Inc, General Electric Co, Exxon Mobil Corp, Procter & Gamble Co, Johnson & Johnson, AT&T Inc, International Business, Chevron Corp, Bank of America, CorpPfizer Inc
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