John Dobosz

On the buy write, if you earn the dividend, and if KR closes above $53 on August 23, you would earn $1.87 per share on $51.45 per share at risk, or 3.63%. Over 43 days, that would be an annualized return of 30.9%.

The 38 stocks in the Forbes Dividend Investor portfolio gained an average of 4.26% on the week. The prospect of lower interest rates was especially powerful medicine for real estate investment trusts and regional banks.

Just a few months ago, it seemed that resurgent inflation during the first half of the year had all but scuttled hopes that the Federal Reserve would be cutting interest rates in 2024 from their highly restrictive levels. That outlook has changed remarkably.

If you followed my trades on any of these stocks, you are sitting on unrealized profits. I recommend realizing those profits by selling each of these stocks at current market prices.

On the buy write, if VFC closes above $17 on August 2, your shares would be sold at $17, and you would earn $0.85 per share on $16.15 per share at risk, or 5.26%. Over a 15-day holding period, the annualized return would be 128%.

If VIRT closes above $30 at expiration on August 16, we would be assigned on the calls and earn $1.40 per share on $28.60 per share at risk, or 4.9%. Over 28 days, the annualized return would be 63.8%.

Milwaukee snow plow maker Douglas Dynamics (PLOW +8.8%) was our top performer. Our regional banks—Columbia Banking System (COLB +8.7%), Northwest Bancshares (NWBI +7.3%) and TrustCo Bank Corp NY (TRST +6.8%)—were also big winners.

If OZK closes above $46 at expiration, we would be assigned and earn $1.75 per share on $44.25 per share at risk, or 3.95%. Over 38 days, the annualized return would be 38%.

If you took part in buy writes on shares of teen clothing and accessories retailer Buckle (BKE) earlier this year on January 10 or March 28, I recommend selling the stock this afternoon on its latest run above $40.

If CAL closes above $37.50 at expiration, we’ll be assigned and earn $1.55 per share on $35.95 per share at risk or 4.31%. Over 22 days, the annualized return would be 71.5%.