If you are doing regular covered call / share renting / buy write strategy then sooner or later you will meet the condition that the stock that being optioned is giving shareholder some dividend. And there are some interesting interaction or behavior that you need to realize during this period. Knowing this little detail will help you adjust your strategy to maximize your profit.

As investor, you will find out that dividend is one of income stream on your investing portfolio. The higher the dividend, the happier is the investor. But for trader, especially short term trader and call-option writer, there is more factor to be factored-in in order to maximize the profit or prevent lost. Why? That’s because of the typical behavior of the stock price during the “Ex-Dividend Date”.

Covered Call also known as “Buy Write” and “Share Renting” is getting more popular each day as more people know its true potential. This strategy is almost non-directional – means it doesn’t matter where the market goes (up or down or sideways) you still get the money , upfront.
It’s legal stock-market-related trade for public (means everybody can do it ). If you have stock / share investment, you should have this monthly income already, if you have not – then this article is for you.

Has nothing to do with the world biggest miner BHP Billiton, BHP stands for “Buy, Hold and Pray” – it is the oldest and classic strategy that our grandfather or father or some of us still do when it comes to investing in share, but this time with a bit of twist. We set a protection against a downturn – 100% capital protected.

Has nothing to do with the world biggest miner BHP Billiton (ASX:BHP), BHP stands for “Buy, Hold and Pray” – it is the oldest and classic strategy that our grandfather or father or some of us still do when it comes to investing in share.

As the term reveals, it started with buying some share in [...]