Thursday, January 17, 2013

SWHC

I was actually thinking of selling my S&W Holding Company shares, since that stock doesn't pay a dividend, but darn it, it keeps rising!  (The Sturm, Ruger stock does pay a dividend, which is an incentive to keep it.)

1 comment:

cremes said...

You may want to consider selling Call options against your position. By doing so you would be taking the bet that the implied volatility of the stock will be greater than the realized volatility. In shorter terms, it's a bet that you can collect more money in options premium than you could collect if you *only* were long the stock.

You can create a nice "synthetic" dividend by doing this.

The downside would be that sometimes the stock will rise above the strike price and you will be "called away." You can always buy the stock back though.

Google around for "buy write options" for more information.