On 1/9/23 I entered an SCHD trade in both my conservative portfolio and my new dividend portfolio. I don’t mind the double position because I really like SCHD and I restarted both these portfolios for 2023 and need to get my core positions in. I will probably let it close out in the conservative portfolio and keep building it in the dividend portfolio.
To start the trade out I bought SCHD for $77.55 and sold the 1/23/23 $78.00 call against it.
I will manage these differently in each portfolio. In the conservative portfolio if the shares do not get assigned I will either sell an at the money (ATM) or a deep in the money call against the shares I own in order to get the trade closed out at a decent profit and move on.
In my dividend portfolio if the position is not exercised I will either sell an ATM or slightly out of the money call against the position. I will look at where it is trading and what the market is doing to make the decision.
If the short call is exercised in my dividend portfolio I will probably sell an ATM or slightly in the money Put hoping to get assigned the stock. With the short Put and the profit from my initial covered call this should give me a solid entry below current values. Then, I start selling calls again and collecting dividends.
The goal in the conservative portfolio is to grab a quick, relatively safe profit. The goal in the dividend portfolio is to continue to push the entry price down and rake in dividends.
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