In IRA #1, both T and VZ called away for their dividends. Cash was used to buy CF at an opt adj cost of 28.28/share but potential gains are limited to 35 through Aug opt expiration. Also sold more puts against CF.
Current dividend yield is over 4% and it trades for 11 times earnings.
She paid 32.23/share and sold the 5/20/2016- $36.00 Call opt for .71/sh.
Also sold VZ, T and DISH.
She upped her STX position by 63%. It's now her 9th largest holding at 3.3% of her assets.
She's short these--DISH NETWORK CORP CL A 4/1/2016 $46.00 Call
If not called she'll sell more calls next week. DISH-current price is 46.
The 4/22--97 calls are now out of the $$$ but yes-the June 92.5 calls should be called. Regardless-she receives the dividend.
And please note- Grandma needs to raise an additional $30,000/year due to recent setbacks in her health. Getting old isn't as fun as it may appear.
In IRA #3, I sold many puts today. This account is over 20% $$$ and the puts short are all laddered so I'll have new cash to invest about every three weeks.
One trade of note-sold SPY-May, 198 puts-collected a $2.63/share premium. SPY was priced at about 204.55 and the vixs was at 14.35
This account owns zero SPY and I'd like to have a 5-10% position in it.
In the $$$ call options and the XD date. Will Grandma's shares be called early? She's short the 97- 4/22 calls, and the June 92.5 calls.
I'll go with yes on both-stay tuned--------
I di but in was only a 1 week option. You'll note that my timing wasn't the best.
With VRX trading up 11% to over 30, Grandma sold May call options bringing her opt adj cost down to 38.32 but her potential gains are limited to 40 through May opt expiration.
"I'm still short brkb puts. I'm short brkb calls as well. Good luck to all in q-2 and beyond" Dito
I'm also short SPY puts but I don't buy them back because of stock ideas like VRX. Sometimes it's best to wait.
Tariffs on China for all the wrong reasons. You don't put tariffs on China for unfair trade practices but rather you do it because they're exporting their pollution around the world and it's time to say cleanup or will manufacture or #$%$ somewhere else. They also need to control their lapdog -Kim Jong-un. Every time Kim threatens his neighbors, imprisons an American or makes another speech we should raise the tariff another 10%.
Makes sense to me-you are what you eat.
I'd tax all sugar. If they ever do you would want to sell your drug stocks.
I filled out an NCAA March madness bracket for her which should make her even after she wins-Go Ducks!
She owns 210 shares with an opt adj cost of 40.51/share and gains limited to 45 through Friday on 200 of them.
This account is currently worth about $535,000 and she has another $40,000. in the bank with one to two years to live. I'm investing for her estate too.