Sorry. I don't understand your strategy. If you sell puts at 23, 24 or 25 then the option holder will only exercise his right to sell if the price remains low. It may not and you may just keep the premium but if it does drop further then your strategy just adds to your losses rather than mitigate your risk. Also you would hope that any buy back gives you more dividend and franking then the amount of cap losses. There is a clear timing disadvantage as Dividends and franking credits get taxed in the year and caplosses can only be adjusted against capital profits.
Can you explain with an example and numbers how you see it working.
i have bought today to add to my ANZ and CBA holdings as I think it's a good entry price now but I wouldn't run the risk of selling options unless I had heaps of free capital to support adverse movements in price.
WBC Price at posting:
$23.13 Sentiment: Hold Disclosure: Held
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