How many other retirees out there put their life work in at BB&T, trusted management, bought stock their whole career, live on the dividends in their old age and watch these lying cheats throw their retirment into their own pockets. Cut the $100K board fees and all management salaries by 68% to help pay back the TARP funds instead of shareholders. We were not the dumbasses with no backbone to refuse the TARP.
"You're telling retirees with diversified holdings concentrated in BB&T for the *dividend* to sell covered calls? I would bet most have no idea what those are."
After reading some of the posts regarding "living on the BBT dividend" and "holding until the recession is over". . .
Yup. . .if they are going to be so stubborn as to hold BBT simply because they have always held it or because their parents willed them the stock. . .covered calls it is.
The reality they aren’t going to part with the stock leaves little option for "making money". Even if they don't know what an option is they can ask someone for help. I strongly recommend them to ask for help. . .it's at least an alternative to watching their "investment" dwindle from the sidelines.
If you have someone you recommend, go for it. The dividend cut seems to have left blood in the pasture.
You're telling retirees with diversified holdings concentrated in BB&T for the *dividend* to sell covered calls? I would bet most have no idea what those are. I couldn't even get my mother - based on the CRE % and loss estimate, my telling her for months the dividend (that she didn't need as she runs a surplus on pension, but wanted anyway to "pay taxes") would be cut, that single stock investing in this market was suicide & explaining diversification principles, etc. -- to sell even little bits of this stock. Of course now she's all upset as her basis is $40, dividend crushed.
SO - It's a different approach to "investing" for this group - based more on emotion than analytics. It's why Suze Orman is so successful - she knows how to tap that (and obviously I don't).
BBT isn't going bust.
Sell covered calls against the shares you own to compensate for the reduced dividend income.
With the current volatility you will end up making more from the calls than from the dividend anyway.
The drawback is that your core holding is / could be worth less.
The benefit is, if you aren’t planning on selling the underlying stock then the reduced stock value doesn't matter (to you).
Depending on the amount of stock you hold in BBT it would be worth meeting with a financial planner who understands how to set this up for you. The calls should be sold on a monthly basis to capitalize on the time value decay.
NOTE: You will also collect the dividend on the underlying shares each quarter.
You can sell June $30 calls today and make $15.00 for every 100 shares you own (in a month).
You can sell June $26 calls today and make $70 for every 100 shares you own.
You do this every month and you can well exceed the dividend income.
Good luck either way.
Its not his responsibility it was mine and should have known better. And banks in the past banks were typically held for the dividends not capital appreciation. But I heard JAA say many times that he put his 401K in BB&T. Guess he had more money and was not hurt as bad. Also, except for a few exceptions, if you look at the amount the Board as invested it should tell you that have no ownership stake and could care less about the company and shareholder and are only their because JAA knew ther were yes men and only stay because of the $100K fees.
Is that you best shot you mental retard? Next time find someone with intelligence to come up with something good. Maybe some kindergarden kids, I'm sure they have a better grasp of the English language.
No, you were just indicating that reading up and actually learning about something wouldn't answer the question. That's worse than not answering the question.
If the majority of the posters on this board, who are now complaining, had stayed informed and taken the time to read the financials, listened to the conference calls and read the report of stress test results they would have seen the handwriting on the wall. But no, it's easier to claim their "trust" has been destroyed and "oh woe is me" the dividend has been cut. People like that should be in treasuries or maybe insured CDs.
Learn to read and maybe you will not look so ignorant. One of the conditions the govt is placing on banks before they let them give the TARP money back is they must prove they can raise equity/funds without FDIC guarantees. BB&T has now fulfilled this requirement.
You were one of the largest critic's of BB&T having TARP funds, now you are crying that they are doing what the government requires to give the TARP money back. make up your mind Ahole.