Q4 earnings are expected to be announced after market hours on 2/27/14Estimates: 4.200 | 3.766 | 3.451 (High | Mean | Low)
If you wake up Friday and the stock is down $7 per share I lose nothing, in fact I'm ahead the option premium. Earning a 2% premium in less than three days adds up.
And did the article come out the day after options expired?
Call options premiums have gone wild.
I sold cash secured puts. Since I don't own the stock in my IRA I can't sell naked calls. Yes, I could have bought the stock and sold call options but my way is safer but also potentially far less profitable. But if the stock drops I'm in but at a much lower price and I too may see large gains down the road.
Open at 87 and close at 86. Current price 83.76
I sold put options today in my IRA that expire Friday and if I'm right about the closing price will prove to be very lucrative.
If I'm wrong and the stock drops 10% or less, I should be able to recoup my losses through selling call options against my position next week. If it drops over 10% it could take some time to get even.
In my opinion earnings should be very good but investors could still sell on the news thus the very high put option premiums currently being offered.
My wife and I went for a walk-Google the story.
Cable, TV and radio.
But I think we buy the whole thing and Graham will keep a minority stake and continue to run the company.
I'll have to up my estimate because our stock holding may have done a little better than I originally thought.
SPY/the S&P 500-was up 10% during the quarter and we had to have been close to at least 7% which is about $8 billion-35% for taxes, which gives you $5.2 billion/1.64 million shares= another $3000 to book value. 3000+3400+127,000=133,400
I'll call this my wife's pick-133,400
Sold out of the $$ call options against COP today in this same IRA.
COP is currently trading around 66.6---the devil made me do it.
In 2005 MRH took a huge loss to book value due to hurricanes and as a result they changed their underwriting parameters so as to take on less risk and also earn less. They really haven't been tested since making these changes in 2005.
"The 2005 Atlantic hurricane season was the most active Atlantic hurricane season in recorded history, shattering numerous records. The impact of the season was widespread and ruinous with an estimated 3,913 deaths and record damage of about $159.2 billion. Of the storms that made landfall, five of the season's seven major hurricanes—Dennis, Emily, Katrina, Rita, and Wilma—were responsible for most of the destruction. The Mexican states of Quintana Roo and Yucatán and the US states of Florida and Louisiana were each struck twice by major hurricanes; Cuba, the Bahamas, Haiti, Mississippi, Texas, and Tamaulipas were each struck once and in each case brushed by at least one more. The most catastrophic effects of the season were felt on the United States' Gulf Coast, where a 30 ft (10 m) storm surge from Hurricane Katrina caused devastating flooding that inundated New Orleans, Louisiana and destroyed most structures on the Mississippi coastline; and in Guatemala, where Hurricane Stan combined with an extratropical system to cause deadly mudslides."
I believe we earned over $1000 per month in 2013-I'll go with $12,210/share.
Note: As of the end of the 3rd Quarter we'd already booked $8814/share in earnings. Most of our insurance gains are booked in the 4th quarter and the two boys do trade their equities occasionally thus booking profits.
Book value estimate---132,231 verses closing under 127,000 in September.
Cash earns next to nothing but she receives a monthly check from this account and one does need some cash on hand to take advantage of potential future corrections in her holdings. She currently has cash on hand to last her 18 months and that doesn't include future dividends and interest earned. So far year to date her account is down about 3% because her top holdings are all down so in her case cash earns more than her stocks.
She bought some T a few months ago for a trade and its dividend and those shares may be called away in April at 33. She'll use this cash for like trades but she'll wait for a market correction or her cash to reach 10% of assets.
Interesting move-I hope it works out for you.
I didn't like PM's earning's report but I'm not willing to sell at this price, however I did sell out of the money call options against most of my accounts.
I'll continue to add to MO because they own SABMiller and chewing tobacco. It's a cash cow and I like cash cows.
IRA #1 is currently 33% cash which is used to sell cash secured put options. This account is currently short the MO- March 36 puts, so I should be buying more soon. 17% of this cash is currently available for investment so if MO drops I'll buy more or sell more puts against it.
In IRA #3-cost about 35.5/share. I'll add more this Friday if MO is still priced under 36 because I'm short those put options. Good times for tobacco investors.
Also bought SODA in two of my IRAs and sold call options against my shares.
She sold 75% of her JPM shares thus knocking it out of her top 10 holdings and moving KO up. The balance of the remaining shares are all paid for via her profits in the stock. These shares were called away at 57.5 per share because she was short call options.
New top 10: #1 & 2--PM and BRK-15%, #3-LO-7.9%, #4 & 5-WFC & IBM-5%, #6-MSFT-4.6%, #7-AIG-4.2%, #8-USB- 3.8%, #9-COP-3.3%, #10-KO-2.9%. Note--MO is in 11th place at 2.5% and she may buy more on any additional weakness because she likes the dividend yield.
Cash now makes up 6% of her assets, bonds and CDs-11.5% and the balance in equities. Grandma likes her tax free dividends.
GREENSBORO, N.C., Feb. 20, 2014 /PRNewswire/ -- Lorillard, Inc. (LO), the third largest manufacturer of cigarettes in the United States, announced today that its Board of Directors approved a 12% increase in the quarterly dividend on its common stock from $0.55 per share to $0.615 per share. The dividend is payable on March 10, 2014 to stockholders of record as of February 28, 2014.
This step marks the sixth dividend increase and a doubling of the quarterly dividend rate since Lorillard became an independent publicly traded company in June 2008
Grandma Thanks You