Reinvesting High Dividends Deep Dive | Unemployment & the Fed | Option Time Value Explained | Shareholder Yield

Derek Moore is back with Jay Pestrichelli, CEO of ZEGA Financial 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.

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

Is it 1994 All Over Again? https://podcasts.apple.com/us/podcast/1994-95-all-over-again-in-markets/id1432836154?i=1000590865306

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? https://podcasts.apple.com/us/podcast/now-its-1-fed-rate-cut-nvidia-options-volatility-implied/id1432836154?i=1000653836218

Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT

Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt

Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

Contact Derek derek.moore@zegafinancial.com

www.zegafinancial.com