The services industry is one of the best for smaller investors to perform due diligence. Most casinos are busy on a Saturday night, but knowing first hand which ones are filling the tables on a Tuesday night adds a lot of color to financial statements.
The Sands is one that should be looked at for either a long-term hold or a dividend capture.
My only real concern is Sheldon Adelson, the CEO, possibly stepping down. During the worst of the financial crisis, Adelson backstopped LVS with hundreds of millions of dollars to ensure the company stayed liquid.
Adelson knows how to make money, and his leadership with LVS creates a premium for the shares. While having a minimal impact on a dividend capture, a change of leadership is a risk factor to consider for longer-term holds.It is important to sell the call option hedge at or near the asking price for at least the minimum amount over intrinsic value. I don't want the option hedge unless the sale will provide at least the minimum 40 cents over intrinsic value. If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 40 cents. The most I can make is 65 cents, if I hold the covered call through option expiration day and the stock gets called away. Note: When learning a new trading strategy, it is better to use a simulated trading account first. Stockpickr is a great tool to practice new strategies and learning about the market. I use Stockpickr and recommend it. It is easy to make mistakes when starting out on a new strategy and mistakes cost a lot less with a simulated account. After a level of confidence is built, then it may be time to move into a real money account.
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