NEW YORK (TheStreet) -- Economic and tax concerns for investors in 2013 are turning many investment plans upside down. After the people voted to keep a divided Washington in place, you should expect a lot more of the same short-term patches and lack of long-term guidance.
There are few things Wall Street hates more than uncertainty; the only certainty coming from leaders is two scoops of more uncertainty. While many investors are full of gloom and doom, keep in mind the market travels in circles.
The circle includes both good and bad economic times. Right about the time the media is fully bullish, we start rounding the corner in the other direction like a pendulum on a clock. Round and round we go.
While many investors struggle to keep up with the direction of the market you can get a jump on it. Finding stocks you're willing to hold for long-term value, but positioned to provide short-term gains may give you a market edge in a tough market environment.We can examine a few solid names that will trade ex-dividend soon. Selling covered call options as a hedge, we collect a quick return or hold for an expected greater return. I call this method dividend capturing, and it's one of the few strong edges a retail trader enjoys currently. 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 amount needed over intrinsic value. My last step (completed before making a trade on the same day) is to check company announcements and news sources for possible price moving events. This is especially critical during earnings season.
McDonald's (MCD) Background: McDonalds is the leading global foodservice retailer with more than 33,500 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonalds restaurants worldwide are owned and operated by independents .Yield: 3.52% Dividend Amount: 77 cents Ex-Dividend Date: Nov. 29 Beta: 0.40 Strategy: Buy McDonalds stock and offer to sell the December $82.50 strike or lower call for 55 cents over the intrinsic value. I will attempt to close out the trade with a gain of near 43 cents, plus dividend.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV