Today in IRA #1, I doubled my position in ADX which is a closed end fund, to 2% of assets and added a small position in PEP=about .8% of the account. I also have an order in for a thinly traded stock that may fill today.
I'll be selling less cash secured puts in this account in the future because premiums are too low.
I think you're thinking of selling covered call options at 140 --160 which makes sense if you're interested in a little extra income and you don't mind selling a few more shares at the strike price you select.
If you were to sell puts against AAPL it would "put" you back in the stock at the strike price you select. So if you wanted to buy another 200 shares at 110/share you'd sell 2 of the 110 put options and collect the premium. The longer the duration of the option the greater the risk and the more you'll be paid.
"Journalist Carol Loomis delivers another question about whether high stock prices and corporate profits relative to overall growth should concern the investing public.
Mr. Buffett doesn’t seem worried, saying the high level of corporate profits indicates how “wonderfully well” American businesses have done. When it comes to expensive stock prices, he says the level of interest rates going forward is what will shape his view on their attractability. “If we continue with these interest rates, stocks will look very cheap,” he says
Buffett: "Stocks are selling at historically high prices, but we are still in a very low interest environment."
BRK Annual meeting live Blog going on as I type for those interested. I've been to 4 meetings the first being in 1986.
With regards to AIG--My regular IRAs own lots of AIG but this Roth didn#$%$ a new purchase. The Roth makes up about 14% of IRA #1's net-worth.
First Quarter Performance
For the three months ended March 31st, the total return on Adams Diversified Equity's net asset value, with dividends and capital gains reinvested, was 2.1%. Comparable figures for the Standard & Poor's 500 Index (S&P 500) and the Lipper Large-Cap Core Mutual Funds Average (Lipper Peer Group) were 1.0% and 0.9%, respectively. The total return on Adams Diversified Equity's market price was 2.4%.
Roth IRA #1 took a 1.7% position in AIG this morning. AIG trades at a 30% discount to book value and they're buying back about 8% of their shares this year.
Thank you in advance Mr. Market.
Book value, a measure of assets minus liabilities, jumped to $80.16 per share as of March 31, from $77.69 at the end of December. The company repurchased about $1.4 billion of stock in the first quarter and another $800 million this month
AIG now trades at 56.
More than doubled my stake in AAPL to 1.75% of IRA #1. Paid 125.4/share and sold 1/3 of my COP shares above 68 to finance a portion of the purchase.
AAPL is now buying back $4 billion worth of shares per month under their new share repurchase program.
"Energy Transfer Partners Announces Seventh Consecutive Quarterly Cash Distribution Increase."
"Energy Transfer Partners, L.P. (NYSE: ETP) today announced that its Board of Directors has approved a $0.02 increase in its quarterly distribution to $1.015 per ETP common unit ($4.06 annualized) for the quarter ended March 31, 2015.
The quarterly distribution of $1.015 represents a distribution increase of $0.32 per common unit on an annualized basis, or 8.6%, compared to the first quarter of 2014 and represents an annualized distribution increase of $0.08 per common unit compared to the fourth quarter of 2014. This marks the seventh consecutive quarter that ETP has raised its distribution. The cash distribution will be paid on May 15, 2015 to unitholders of record as of the close of business on May 8, 2015."
Every quarter they raise the dividend.