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American Capital Mortgage Investment Corp. Message Board

  • lenloc lenloc Jan 2, 2013 11:41 AM Flag

    Whattaday!!

    The dumb tea partyers cried uncle and we got a great tax deal. In particular about the div tax rate.
    The first $400k of divs remain at old 15% tax rate. About 250k of my divs r sheltered in the roth and the rest will only go up to a max of 20% tax rate. Whattaday!!
    Also the jan13 puts (over 25 0f them averaging 12k a piece) are expiring fast.
    Yes my portfolio is up over 400k making future buys more expensive (and reducing put premiums) but there are always opportunities from time to time.

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    • Lenloc,

      You mentioned you had ShortPuts expiring that you had sold for 3.50ea, or so. How does that make 12k each. Sounds like $350 each or $8,750 for the lot of 25. Explain?

      DocReits

      • 2 Replies to reits_r_us
      • part 2 of 3 (farma)
        As for ur question on puts unfort a strongly rising market is a bad time to sell puts (just like it is for buying stocks) since the put premiums shrink. Virtually all my puts have considerable gains coz of this (and time decay too). So good bargains r now hard to find and lately i've not sold any new puts. I look for air pockets hitting good stocks or when the market has declines significantly.
        A few weeks ago i sold jan15 qcom 50 and 45 puts and also jan14 spy120 and jan15 spy95 but the premiums have atrophied some 20- 25% in a matter of weeks hence i cannot recommend these presently.

      • Doc I may have put it inartfully. I don't mean I have just 25 puts on a single stock at a single strike price in jan13. I meant that I have anywhere from from 10 to 60 puts on EACH of about 25 different stocks and strike prices which are expiring in jan13. The total puts would be about 750 puts or so. The premiums received for each SET of puts varies from as high as 20k to as low as 4k. The average for each put is about 12k. The total premium received for the jan13 puts is therefore 12k x 25 =300k (approx). I have lesser number of puts for jan 14 and some for jan15 too. On some stocks like qcom, pg, pep, utx, SPY etc i have different strike prices and dates.
        Yes I am a fairly active put seller. Reduces boredom from being mainly a buy and hold stock holder.
        As i said elsewhere my put recycle rate is below 5%. Of course it may go higher if the market takes a big nosedive and fails to recover over a reasonable time
        .
        BTW, if u feel that i behave in an unseemly braggart manner, I plead guilty. The facts/numbers I post are genuine but i only want to annoy/needle RR and his b sniffers who refuse to engage in any thoughtful discussion and only seem to enjoy throwing insults. I plead guilty to responding in kind. But unlike RR i do not fib nor exaggerate.

    • Hey RR can u pray harder to bring back the good ole 2008? Stocks getting mighty expensive and future short put premiums shrinking. Things were so much more enticing in late 2008.
      I really don't like my portfolio jumping over 500k in one day COZ I HARDLY EVER SELL so the rise doesn't count right?

      Market Value: $23,204,537.42 Day: ($513,892.10 / 2.26%)
      DJIA 13,412.55 +308.41 (+2.35%)

      Yep i fell behind both the dow and S&P coz of my staples and large position in RDSB which had accident in the Arctic.
      Mebbe i should sell puts on it. what do ya say?
      When r u gonna come outta yer hole o great guru?

 
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