Grandma sold calls against GE Today. I believe they were the March 28 calls. She'll earn two more dividends-unless called early, plus a 2% option premium paid her today.
Bought more today at 1,075/share and sold naked call options against TLT to compliment the trade.
This was done in my personal account using proceeds from a life policy.
I bought GLD in IRA #1, which I posted on 7/20-"In IRA #1-bought a 2% position in GLD at 105.9" and I sold the Sep 30 calls that just expired. Today I sold the Dec-18--110 calls. Netted 2.14/share or about 2%.
My new option adjusted cost after netting out option premiums is 102.43/share.
Short these--GLD Sep 30 '15 $109 Call.
The best thing about this investment is it kept me from buying more oil stocks which would be down at least 10%.
I spoke with Schwab yesterday about their margin rates-as of yesterday I have a small balance-, and they've lowered my rate to 3% and dropped my commissions about 20%. They've also agreed to give me 50 free trades if I transfer $50,000 which I'd already planned to do to pay off my margin debt. I cashed in a life policy yesterday collecting $49,500 that would be worthless in 30 years if current interest rates remain the same. Also I'll no longer have thoughts of knocking off my wife.
Now I'll have the option of buying high yielding dividend payers using a modest amount of margin and pocket the difference.
Yesterday I sold the 140 calls against half the shares I just bought and I have orders in to sell the 145s. I like to ladder my call options.
Also with respect to your margin rate--ask your brokerage firm for lower margin rates. Tell them you're looking at Interactive Broker and they should lower your rates. I currently have a small balance with Etrade and I'm paying 3.5% per year.
The last time I looked Interactive only charged 1.5% and their commissions are a fraction of what I currently pay though ET and my other firms.
Had shares put to me in two accounts at 130/share-net option adjusted cost is under 129/share. Had cash in one account and sold bonds today in the other to cover the buys.
Note-also bought back 135 puts in another account for a $3.5/share loss.
"Vector Group Ltd. (VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. Additionally, the Company declared its regular annual stock dividend of 5% for the 17th consecutive year. Both the quarterly cash and the annual stock dividends are payable on September 29, 2015 to holders of record as of September 16, 2015."
Under 35 buy with impunity--- 4% yield, 5% Earnings Growth Rate and trading under 17 times next year's earnings.
Currently long the stock and short call options that are worth next to nothing.
Off to pick more hops. Should be done in less than 3 weeks.
In June of 2014 I paid 82.5/share for these shares but I've earned $6.5/share selling call options giving me an option adjusted cost of $76/share. I collected another 3% premium on Friday which expires in February.
Friday I sold call options against my shares that I hold in my Roth. The premium was rich but it should be higher Monday.
Yes P/E ratios are above average but interest rates have never been lower and who's to say when they'll go higher? AAPL only trades at 11 times its fcf #s and it yields close to 2% which is more than 5 year treasuries. If I could earn 5% in a 5 year CD than yes the market is high but I can't earn anything close to that.
Sold puts on SPY and AIG and bought some ADX all in IRA #1.
ADX is now 2.6% of my portfolio. This account is still over 20% cash but it's all tied up until Sep options expire.
Good luck, until tomorrow, I'm off to pick hops.
I'm short these in IRA #3---SPDR S&P 500 ETF 8/21/2015 $201.00 Put---They should be put to me but you never know.
Also sold of of the $$$ puts against AAPL that expire prior to their next earnings announcement. Premiums are high right now and may get a lot higher next week if the selloff continues.
Note-Aug options expire today so more $$$ is available Monday.
Looks like I'll be buying more BRK in Sep, because I'm short these options. I was also short the July 140 puts in the same account but they expired worthless last month.
If put to me my BRK holdings will increase by less than 1% and I believe I'll eventually make $$$.
IRA # 1 is only 6% tobacco with the Roth portion making up 27% of the assets in the account. The Roth makes up 14% of the total assets in the combined accounts.
These accounts are also short put options against MO but they're well out of the $$$ so I doubt I'll be buying more.
However, the Roth portion is 26.3% tobacco invested in the following stocks--PM 7.5%, RAI 7.2%, MO 6.8% and ITYBY 4.7%. The IRA portion is all in one stock--PM 12.3%
The Roth portion makes up about 36% of the total assets.
IRA #4 is my smallest IRA.
Note-I do occasionally sell call options against my holdings for added income.
It's been a good year to be in tobacco.
In other news-hop picking has started so it's a good time to relax and have a cold one.