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| | | Hey there, Blake here. | Most traders panic when markets get choppy. I build safety nets. | While everyone's chasing the next AI rocket ship, I'm looking at something way more boring - and way more profitable. | I combine dividend yields with put premiums to create what I call "safety nets" that can deliver 6-10% returns even if stocks go nowhere. | Here's how the math works on a real example I just analyzed: | My CVS Safety Net Breakdown | CVS Healthcare currently pays a 4.2% dividend. Nothing special there - you can get 4.23% risk-free in 10-year treasuries. | | | | But I don't just buy the stock. I sell puts first. | My Setup: | CVS trading around $62 I sell September $60 puts for $1.44 (2.3% premium) Stock would have to fall to $58.56 before I get assigned If assigned, I collect $0.66 quarterly dividend on my lower cost basis
| My Safety Net Math: | | We're approaching 9% between the dividend yield and the put premium that I use to reduce my cost basis. | That means CVS could drop 9% and I'd still break even. If it stays flat, I collect 9%. If it goes up, I win bigger. | Why I'm Watching This Now | I'm seeing sector rotation that most traders miss. Utilities are rising while tech stays flat - classic "flight to safety" behavior. | When things get uncertain, there's usually a flight to safety and a risk-free return. With possible September rate cuts and economic uncertainty, dividend stocks could become the new high-flyers. | The 10-year treasury yields 4.23%. I'm systematically finding ways to beat that with protection built in. | My Real Edge | Most income investors just buy dividend stocks and hope. I layer in put premiums to reduce my cost basis before I even own the shares. | On my Kinder Morgan example: I collect 2.5% monthly selling puts. If I never get assigned, that's 30% annualized. If I do get assigned, I own the stock cheaper and start collecting a 4.3% dividend. | Either way, I'm building multiple income streams while everyone else is gambling on earnings beats. | | | | Want to see my complete dividend strategy in action? | I break down four specific stocks - including one paying 7% dividends - with exact strike prices, timeframes, and my systematic approach to building these safety nets. | Plus why I think the next 2-3 months could be prime time for dividend plays. | Watch My Full Dividend Safety Net Strategy Video Here | Take care, | Blake Young | | | |
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