http://seekingalpha.com/article/267560-6-dividend-stocks-to-hold-forever
I have a problem buying stocks when they are significantly above their 200 DMA. All of these stocks seem somewhat expensive by that standard.
What I don't have a problem with is selling covered calls on long term dividend growth companies that have made significant runs above their 200 and 50 DMA's.
CL and KO both qualify, haven't looked at the others.
The CL Jan2012 $100 Calls would get $1.00. CL requires a 26% stock price CAGR to get to $100 by 1/21/2012.
The KO Jan2012 $77.50 calls would get $.41. KO CAGR is 14.2%
Won't get rich with these and I've been told that the income from this type of trade is insignificant. Problem is that no one has been able to define to my satisfaction exactly how many insignificants make up a significant.
John
I am short WMT CC's Jan2012 $65's, but these were written in Oct 2010.
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