SCHD is trading just over $84 with a dividend approaching, and I’ve got important decisions to make. A short put is expiring out of the money today, and a slightly in-the-money covered call is expiring next month. I’ll be choosing the strike price for my next cash-secured put and considering whether to add more shares. Watch to see how I’m managing this ongoing trade campaign.
Note: I make a kind of big error at 5:26 in this video! I mention the dividend and say it’s $82/share. Oops, I was supposed to move that decimal point over two places! Sorry about that. It’s actually $0.82 per share, or $82 per option contract. For more explanation of the “100 multiplier, “check out Chapter 3 of The Novice Investor’s Guide to Stocks, Funds, and Options, Second Edition. (You can even download a free sample at my website.) Or check out my Udemy course, Introduction to Options Trading. Links are below.
This is the third video in a monthly series of option trades on SCHD. The original trade set up was July 24, 2024. You also might want to check out my weekly trades on QQQ in the same video playlist.
Follow my options trading click by click on the ThinkorSwim web based platform at Schwab. I trade cash secured puts and covered calls and buy shares to hold for dividends and capital gains.
If you’re looking to deepen your understanding of financial markets and master the art of options trading, you’re in the right place. I aim to provide you with insightful, easy-to-follow content that can help you become a more confident and successful trader.
I invite you to visit Saylor Financial Fundamentals. My website offers a wealth of resources, including links to comprehensive courses, detailed articles, and practical tools designed to support your trading journey.
Explore our other offerings:
Read the Book: Gain deeper insights and practical knowledge with The Novice Investor’s Guide to Stocks, Funds, and Options, Second Edition.. Check it out on Amazon:
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I believe in empowering investors with the knowledge and skills they need to succeed. So, while you’re here enjoying our videos, don’t forget to check out Saylor Financial Fundamentals for more valuable content and tools that can help you reach your financial goals:
Thank you for watching, and happy trading!
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