Stop Buying Dividend Stocks, Sell Put Options Instead! - Peterson Capital Management

Professional hedge fund manager Matthew Peterson, CFA discusses a real world-example of his Structured Dividend Capture Strategy, using Lumen Technologies as an example.
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[@tripleal5]

Interesting strategy, makes sense the way you are applying it , not except of risk of course, I will forward to implemented to a couple of stocks as a retail investor

[@lenraake4964]

At first glance, it looks as if the dividends would hardly bring a return compared to the put and call options. So why do they have to be dividend stocks? Why don't you just sell put and call options on high quality stocks that you want to own anyway?

[@DavidMM255]

That's indeed a good question. Another thing is that generally the stock price tends to decrease in price after the dividend is paid to compensate the loss of capital that the company just suffered, that decrease % is generally the same than the dividend paid.

[@lenraake4964]

Yes, but on his chart it looks like it works. His fund went positive on the dividend payments. So that’s a good thing.

[@valuefocused2783]

Matt, I'd love to see what tier level 3 structured value looks like for you. I know this is super niche, but do you have any book or video recommendations?

[@sshahi4463]

Why do you only select dividend stock? Dividend yeild seems low compared to Put and Call yeild.

[@BuggyBabycouk]

I'd believe this strategy if you actually showed it being executed in practice because I dont think you'd acheive any of the metrics you suggest in reality