It's a 2% position. She paid 32.64/share but her average cost is about 36 because she started buying a few weeks ago at higher prices. Dividend yield is over 7% and it's qualified.
She has orders in for two other stocks that may fill soon.
Grandma is back in today at 131.9/share. She sold her original position last December for tax loss reasons for 161.68/share. It's just over 1% of her net
She also got a partial fill on a high yield preferred stock.
Sold 3 of these today--SEAGATE TECHNOLOGY F 3/18/2016 $40.00 Call. Collected 1.11/share.
Dividend and option income is how she survives.
In an IRA that's 40% cash I moved 15% of that cash into PCP at 229.95/share. The deal should be done in January, which gives you 235/share in cash. With the dividend it's priced to return 1.8%.
I'll buy more next month if it remains at current prices.
When BAC raises the dividend to $1/share he might consider exercising but until then owning warrants also limits his downside risk.
But she also sold call options against it that expire about 2 weeks after it goes XD. Her net option adjusted cost is about 33.15/share. If called away at 34 all her remaining shares will be paid for via profits.
She also sold call options against AAPL and KO and she has orders to sell options against AIG that may fill today.
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.
Added another preferred to IRA #1. This account is now 8% preferred a 30% increase with todays buy. Cash now makes up 19% of the value in this account.
Option income this month paid for 40% of the stock I bought today.
Year to date the account is up less than 2% because my top holdings like BRK are all down around 10%.
Top 10 holdings in IRA #1---BRK-6%, AIG and COP--5%, STX-4.5%, AAPL- 3.8%, BP-3.7%, IBM and KO-3.4%, WMT and SYA- 3.2%
Cash is19% which is used for selling put options.
game of life through exercise and a change of diet. July 1st, I quit sugar and replaced it with fruit. I've lost over 25 pounds and weigh less than 170 and haven't felt this good since my early 20s. I'll be 59 early next year.
Health insurance for my wife and I is up to over $1100/month. It's too bad health insurance isn't based on one's weight.
Winners==LO, AIG, SYA, MO and MRH. Not all my stocks go down but I do post my top ten in many of my accounts so your free to short them.
She upped her position by 24% to 5.2% of her portfolio. Her prior cost basis was under $37/share. It's now her 4th largest position behind BRK, PM and MSFT.
If not at 70 by this time next year I'll run 5 miles and do one hundred pushups.
She has an order in to buy T in the same account which may fill today.
AIG and AT&T, they both start with an A but other than that, I must be a very confused man.
This time she did buy more T and sold covered call options against it. Her net return from dividends and option premiums through April is 5% but her potential gains are limited to 34 and it could be called early for the dividend.
T is now her 6th largest holding at 4.9% and I regard it as a replacement for bond holdings. It's current yield is 5.6%.