http://www.morningstar.com/stocks/XNYS/RDS.A/quote.html

Actually I don't have an opinion on any individual stocks. I'm a fund investor, and mostly index funds at that.

craigmatic

(4,510 posts)

4. Shell oil is like 52 dividend is like 7%. Chevron is 98 dividend is like 4.4%

Reply to elleng (Reply #1)

Mon Apr 18, 2016, 08:56 PM

Apr 2016

progree

(11,463 posts)

2. I think there is the long-term headwind of climate change - divestiture and the indisputable

Reply to craigmatic (Original post)

Mon Apr 18, 2016, 08:20 PM

Apr 2016

fact that we have to leave a lot of the earth's fossil fuel reserves in the ground if we are to have any chance of keeping global warming below catastrophic levels. Thus stranding a big chuck of assets (do current valuations reflect this reality?).

Seems like about every month I read of another pension fund or sovereign wealth fund or university divesting from all fossil fuel companies.

On dividend yields, I looked at only three: XOM (Exxon Mobil) 3.4%, CVX (Chevron) 4.34%, and BP 7.73%. Hmmm

That said, I was a big energy enthusiast and luckily happened to buy a lot of Vanguard VGENX in 2009 near the bottom of both the financial and oil market -- rode it way up and, yes, rode it back down.

http://www.morningstar.com/funds/XNAS/VGENX/quote.html

I'm looking to shift to a good alternative energy mutual fund or ETF that doesn't have obscene expense ratios.

craigmatic

(4,510 posts)

6. yes the climate change argument is persuasive. Ideally I'd like to get into Tesla or technology but

Reply to progree (Reply #2)

Mon Apr 18, 2016, 08:59 PM

Apr 2016

those stocks are out of my price ceiling. I'm a conservative investor and a huge fan of dividends.

Hoppy

(3,595 posts)

5. Buy 100 BP and sell a covered call, Jan. 2017. Then, buy a $25 put, Jan, 2017

Reply to craigmatic (Original post)

Mon Apr 18, 2016, 08:57 PM

Apr 2016

.

Your 7% yield will turn to about 20%.

The caveat is that there is a powerful amount of money betting that the stock will go even lower.

craigmatic

(4,510 posts)

8. You sound really good at this.

Reply to Hoppy (Reply #5)

Mon Apr 18, 2016, 09:17 PM

Apr 2016

That's too rich for my blood I'm just dipping my toe in the waters right now so to speak. I got my eye of this shell stock and I was hoping it would drop today but it didn't stay down for long. I'm betting we see gas go back up to the 2.10's sometime in the next 2-3 years.

Hoppy

(3,595 posts)

9. The strategy I described, works best in stocks that trade weekly options and are high volatility.

Reply to craigmatic (Reply #8)

Mon Apr 18, 2016, 09:26 PM

Apr 2016

Example: Goldman Sachs.... Trading now at $159.00

You can buy the May 27th, $155 put at $4.00. x 100 = $400.

You can then sell the $160.00 call, week after week for about $2.00 each week. You can do that until May 27th. when you start all over. Potential profit, approx. $1,000 for the cycle.

If the stock goes below $155. on May 27, you still win.

This is a simplistic overview of the strategy, but study it with Facebook, Apple and so forth.

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