"Fourth-quarter profit for Wells Fargo & Co., the biggest U.S. mortgage lender, jumped 11 percent as a steep drop in mortgage lending was offset by increased interest income.
EARNINGS: Net income after dividend payments on preferred stock rose to $5.4 billion in the October-December period from $4.9 billion a year earlier. On a per-share basis, earnings were $1, slightly above the 99 cents forecast by Wall Street analysts.
Fourth-quarter revenue fell to $20.7 billion from $21.9 billion."
I'm short the January 45 call options in IRA #2 against 60% of my shares. If called away, I'll use the cash to buy more PM, IBM and or additional preferred shares with dividend yields over 6.5%
Also sold call options against STX today because I'd like to take some profits and have more cash available for the above investments. STX is up over 60% in the last 6 months.
I'm a little more liberal with my IRAs because there're no tax concerns. The stock could still drop back under 45 by Friday so I may not have to worry about reinvesting the cash.
I can always buy it back or sell puts against it using the cash I receive from the sell but with PM currently trading near 82 I've got to buy more.
But in taxable accounts with respect to WFC-just hold on and enjoy the ride and in IRAs look to occasionally trade around the position hopefully buying low and selling high but always adding to the original share count.