Grandma buys at 42.42/sh and sells call options- VALEANT PHARMA INTL F 3/18/2016 $45.00 Call for $2.1/sh
AR-page 20-"exclude our Kraft Heinz holding because we are part of a control group and account for it on the “equity” method"
I inputted all the info into yhoo finance "my portfolio" and it gave me a figure of down $3 billion YTD.
I've used SPY to replace our $10 billion in smaller positions and it's about even. Also I've added 700 million shares of BAC which if it were a stock would be down $2.1 billion but that should be discounted due to its high yield and conversion feature.
She bought back the PM call options today for a short term loss of over $4/share but she also sold more calls-04/22/2016 97.00 C - PHILIP MORRIS INTL 4/22/2016 $97.00 Call bringing in another .95/share.
She's also short June 92.5 calls that may be called away for the dividend before it goes XD.
Grandma doesn't mind short term losses when she has short term gains to offset as she currently does.
for a 2% gain and bought more BANK AMER CORP 7.25%CNV PFD, raising this position to 3.44% of her assets.
She'll be making some more moves soon due to in the $$$ call options.
She sold more AAPL call options today bringing her opt adj cost down to 121.79/share but if called she'll only be paid 120/share through Oct.
Her cost of living recently went up 50% because she now has a live-in caregiver.
Current book value was-155,500 at yearend. If you assume as I do, that we'll add another $1000 plus per share/month, then todays buyer is only paying 1.2 times 2016 yearend book.
In my farm account I had some GM put to me at 30 Saturday and I sold call options against it today. My opt adj cost is under 28 which gives me a dividend yield of about 5.5%
Note-goes XD 3/9
BRKB 06/17/2016 120.00 P - BERKSHIRE HATHAWAY 6/17/2016 $120.00 Put
Current value $1.9/sh------? Any predictions?