She bought it yesterday and sold call options today. Opt adj cost--15.47share. Gains are limited to 19 through July. It's a 1.28% position.
current price 16.44
I also sod put options in IRAs yesterday.
In Roth IRA #4, I bought PSX in June of 2014, cost-over 82. Today I sold more call options against it bringing my opt adj cost down to 68.3/share.
PSX 05/20/2016 90.00 C------paid 1.65/sh
I wish I could say that about IBM.
4th Quarter 2015 Earnings: CF announced Wednesday continued positive non-GAAP earnings of $0.76 per share, 20.50% below the same quarter a year ago, below the mean consensus estimate of $0.82
Stock up today on an Earning's miss.
"BENTONVILLE, Ark., February 18, 2016 – The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2017 of $2.00 per share, an increase of two percent from the $1.96 per share paid for the last fiscal year. The fiscal year 2017 annual dividend of $2.00 per share will be paid in four quarterly installments of $0.50 per share, according to the following record and payable dates:
Record Dates Payable Dates
March 11, 2016 April 4, 2016
May 13, 2016 June 6, 2016
August 12, 2016 September 6, 2016
December 9, 2016 January 3, 2017
If WMT were to drop to 50 you'd have a 4% dividend yield, that's my downside prediction.
Currently I'm long the stock and short call options.
"Look for options that expire within three months and that are 5% to 10% above or below the associated stock prices. If the stocks move through the strike prices, investors are obligated to buy or sell stocks above or below market prices"
"Deja Vu All Over Again." It's similar to 2010.
Grandma thanks you for the dividend increase.--"The parent of Camel and Pall Mall cigarette maker R.J. Reynolds said Thursday that it earned $279 million in the three months that ended Dec. 31. That's up from $148 million a year ago when it booked pension charges and other costs ahead of last year's closing of its $25-billion takeover of Newport seller Lorillard Inc.
Results adjusted for one-time items totaled 48 cents per share in the most recent quarter, and revenue jumped 43 percent to $3.05 billion, spurred in part by the Lorillard deal.
FactSet says analysts expected, on average, earnings of 50 cents per share on $3.05 billion in revenue from the Winston Salem, North Carolina-based company.
Revenue from the company's R.J. Reynolds segment jumped 51 percent to $2.52 billion, helped by the addition of the Newport brand. American Snuff sales climbed about 12 percent to $226 million.
Tobacco companies have been focusing on cigarette alternatives such as snuff, chewing tobacco and electronic cigarettes as tax hikes, smoking bans, health concerns and social stigma make the cigarette business tougher.
Reynolds American expects 2016 adjusted earnings to range between $2.25 and $2.35 per share. Analysts are looking for $2.33 per share.
The company also said Thursday that its board approved a nearly 17 percent increase in its quarterly cash dividend to 42 cents per share from 36 cents."
BANK AMER CORP 7.25%CNV PFD L---1175/share
It's a 1.8% holding but I may send new $$$ to account to take advantage of lower stock prices.
Preferred stocks now make up over 5% of her holdings with yields over 6.5%
The AR could deal with share buybacks and I'd even up the chances of a possible dividend to 10% in the next year and 50% within 5 years. Any discussion of these topics could raise the price of BRK by 10%. The call buyer has a good chance but since it's in an IRA I'll take the 1.2% option premium.
BRKB 09/16/2016 150.00 C - BERKSHIRE HATHAWAY 9/16/2016 $150.00 Call
Sold the above calls in new IRA a few days ago for 1.55/share. Currently it must go up 18% before it's sold.
Let's see how it does.
Currently BRK makes up 77% of this account.
With the stock up 5% she sold these call options-AIG 08/19/2016 62.50 C - AMERICAN INTL GROUP 8/19/2016 $62.50 Call , which pays for another month of electricity.
She's now short both May and Aug call options.
Thanks again AIG.
"Book value, the measure of assets minus liabilities fell to $75.10 a share, from $79.40 three months earlier."
They also raised the dividend 13% and added $5billion to share buyback. Last year they bought 13% of their shares back and should do another 10% this year.
Grandma thanks you.
I'll look into that but I like to KISS.
It's only $40 to $50 in dividends per year. In a few years I could start a Roth IRA for her. I'll put her to work doing yard work and picking berries. I still have the first dollar I ever earned at the age of 5.
No. It's a buy and never sell account.
I have a 22 year old nephew I've been cutting firewood with over the last month and he has an account worth $40,000 plus, which is invested in BRK, DIS, KO,WFC, NKE, AXP and a few others. It was started before BRK issued "B" shares so his $$ was pooled with other nieces and nephews.
Never sell unless you need it for school or buy a home is my motto.