Dividends/Basic Trading Strategy.

From Greg M

Lions. I have been getting many questions about what I do with dividends. As you know, I strongly advocate owning large cap dividend paying stocks- especially the big Wall Street banks, which I have been suggesting to buy for a long while now. These would be “core positions,” long term holds.

Me personally, I like to re-invest my dividend payments.. but you can also pull your dividend payment and invest that in gold, silver, crypto, crude, etc. Or just pull your dividend and use it to pay bills.

Below is my basic strategy for the market. Its very simple and straightforward..

Own large cap dividend paying stocks and trade around those positions.

Here is an example.

Lets say you own JPM stock.. you then would set up credit spreads and or sell puts against it. In this manner, if you set these up correctly, (credit spreads/selling WAY OTM puts), even during those times when the stock drops, you can still make money.

I hope that this helps.

GM