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.
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.
You were close.-----Warren Buffett's Berkshire Hathaway Inc. BRK.A, -0.78% BRK.B, -0.18% late Friday said its third-quarter operating earnings fell to $4.55 billion from $4.72 billion a year earlier. On a per share basis, Berkshire Hathaway earned $2,769 versus $2,876. Investment and derivative gains during the quarter totaled $4.88 billion, compared with a loss of $107 million in the same period last year. Berkshire's book value, a measure of net worth, rose 3.3% to $151,083 per class A share at the end of September, the company said. Berkshire Hathaway's class A shares fell 0.2% to close at $204,200 on Friday while its class B shares slid 0.2% to $136.33.
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.
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.
She's cashing out of account #2 today which consists of two mutual funds that charge large fees. Half of it she'll bank and use to cover her expenses and the rest will be invested in dividend paying stocks via the account I manage. This raises her total cash position to about 20% of her assets up from only 1%.
I'll list her top 10 at year end. Currently her top two are BRK and PM.
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.
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.
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%.
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.
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.
I sold more put options against it today. AIG is trading down over 2 to 61 on bad earnings and restructuring charges. Current book value is about 78 so they're buying back shares at a 20% discount to book.
When BAC raises the dividend to $1/share he might consider exercising but until then owning warrants also limits his downside risk.
She bought 333 shares of BX for $30.70/share and sold 3 March 34 call options. Earned $,82/share for the options.
Last year she earned between 10 and 30 percent on three different trades via BX.