Reinvesting High Dividends Deep Dive | Unemployment & the Fed | Option Time Value Explained | Shareholder Yield
By Derek Moore
Show Summary:
Derek Moore is back this week to discuss the Jay Powell Fed decision and the latest in employment and inflation. Then, they do a deep dive into dividend reinvestment. Specifically, analyzing the idea of acquiring more shares and can dividends reduce or eventually pay down your initial cost? They then do a deep dive into how the time premium works on options.
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Topics Include:
- Lowest year over year wages since 2021
- Unemployment ticks up.
- High dividend stocks and dividend reinvestment deep dive
- Acquiring more shares through dividend reinvestment
- Compounding dividends through dividend reinvestment and increasing share count.
- What is shareholder yield?
- What is buyback yield vs dividend yield?
- Fed higher for longer is now consensus.
- What is time value of an option
- Looking at option premium and time value through the market maker lens
- Exploring the SPX 6000 Call option expiring Dec 31st, 2024, premium and time value
- How options are priced
- How market makers taking the other side of customer orders have to hedge their positions
- Components of unemployment report labor force size vs employed and unemployed
- Selling option premium to create high dividends
Mentioned in this Episode
BLS Employment Report (yup, the full PDF)
Previous Week’s Podcast:
Now Its 1 Fed Rate Cut? | Nvidia Options Volatility Implied Move at Earnings | Sell in May and Go Away in Election Years? | Inflation Higher Than 1970s?
Jay Pestrichelli’s book Buy and Hedge
Derek’s new book on public speaking Effortless Public Speaking
Derek Moore’s book Broken Pie Chart
Contact Derek derek.moore@zegafinancial.com