I've contributed a few dollars to Freddie and Fanny. It's my contribution to bringing down the national debt and insuring that we'll always have the resources available to fight our next war.
Because this trade could very well kill you.
I was very lucky because in account #3, I was short LO September-60 call options, which expired worthless last week. Why did I sell call options with such a low strike price you may be asking?? Because the options were sold prior to the announcement of the merger but still I was paid a few $$$s.
I currently have LO valued at over 62 based on the risk parameters of the pending merger with RAI.
Buy LO and sell it high is still my middle name.
Yahoo rakes in another jackpot from Alibaba's IPO
Look to YHOO for your BABA needs. Their stake is currently worth the current market value of its shares.
In other news-The Ducks are at WSU tomorrow-Go Ducks!
Thanks HC--Here's a quote that interested me--"Mr. Munger had mentioned during the annual meeting that some $120,000, apparently from a retirement-account distribution, had “floated” into his account earlier in the week. He sees nothing worth investing it in right now and hasn’t bought an investment in his personal accounts in at least two years, because he is waiting for an irresistible bargain."
Maybe it's time to buy farmland.
Correction-net cost per share of new shares is 59.01/share. Expected merger related return is about $1/share/month plus dividends.
Downside risk if deal doesn't go though is about $9/share but I'll still earn the dividend.
I plan to keep all new RAI shares.
Philip Morris International Inc. Increases Dividend by 6.4% to an Annualized Rate of $4.00 Per Share; Announces Elections to Board of Directors
Grandma thanks you------------
She was paid her first dividend for WFC PFD today and she bought back the LO shares she sold under 59.
Both investments are trading XD today.
LO will be held for the merger wherein she'll receive $50.5 per share in cash and .29 shares of RAI for each share of LO she owns. Grandma likes her risk arbitrage.
She bought back the shares she sold in June pre merger announcement over 61. Her cost was under 59 and upped her holdings by about 25%.
It's still her 3rd largest holding behind BRK and PM.
I also sold more put options against LO today in my other accounts.
Buy LO and sell it high is my middle name.
Bought more in IRA #1 using proceeds from $$ held for selling options. Paid-59.7934/share, increased my holding by about 15%.
In other news-off to pick hops.