We have agreed to restart general selling of out of the money puts. For a time we were very concerned about the geopolitical environment. We still are but maybe not so much. We also had limited access to capital pending sales of real estate we have on the market. The cash situation has not changed. We had resumed selling puts only on what we call Tech DC Wannabes when they dropped at least 3%. We plan to expand that 3% criteria to include Dividend Champions continuing to exclude banks and also those DCs we already own that have not performed well.
Although we are dividend growth investors we are mindful of value. When we have owned a DC for a long time and value declines that could be notice that the dividend will be cut or eliminated. Think WBA, MMM and VFC. We still plan to stay off margin because of the risk and current high cost. So if incurring margin becomes a threat we may plan to use our cash to buy to cancel put contracts. Hope that all makes sense. Our core principles remain intact but it’s all about adjusting our Make Your Family Rich System tools to changing times and our capital availability. Keep an eye on our Daily Diary to see how all this affects our trading patterns.
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