"DISH Network Corp. is strong this morning which could be related to a reports Verizon is mulling a spectrum deal with the company."
in my IRAs and my personal accounts. Cash will be used to sell put options against LO at much lower prices on any corrections.
Also sold call options against LO today because the premium are rich due to buyout speculation.
In other news-options expire today which frees up a massive amount of cash for use next Monday in my IRAs. What to buy next?
LO is now her largest holding and is up over 60% whereas IBM is actually down a fraction and is in the #2 spot. She's also 40% tobacco.
She started with 606 and now is worth 723 with more stocks to be transferred to her from my account very soon. I'm thinking BRKB or xxxx?
Initiated a 1.3% position in WELLS FARGO & CO NEW PERP PFD CNV A, in IRA # 1 and also bought more BRKb in Roth IRA #1.
IRA #1 is currently 44% cash which is used to sell cash secured put options but the premiums being offered are currently dismal so I'll be selling less options and buying more stocks and bonds in the near future.
I'm also having trouble finding compelling buys. Most of the cash I've raised recently has been invested in more BRK, BX, WMT and the convertible preferred stock of WFC and KEY.
I may also start adding convertible bonds for my IRAs and suspend selling puts because option premiums aren't worth the risk. Just look at the option premiums being offered for BRK, PEP, KO, XOM and so on. I'd rather buy more of a stock like BRK than sell puts that offer little in the way of premiums, zero upside and 99% of the downside as demonstrated by the BRK 125 put option. Why would anyone sell them?
Sold some put options against LO in IRA #1 and 3 today with more to follow on any additional drops in the stock. Also bought more WFC convertible preferred shares today in IRA #1.
In other news-It's a good day to prune the trees in my pasture much like I've been doing recently in my stock holdings.
Sold more put options against LO in my personal account that would "put" me back in the stock in a big way if it were to drop another 10-20%. Also placed an order in my IRA that could fill if LO were to drop another $1.
Buy LO and sell it high is my motto.
I took a 1% position in PSX today at 81.74/share in IRA #1 and a 8% position in IRA #3 @ 82/share.
I sold my original shares from the spinoff from COP at much lower prices in both of these accounts.
in IRA #1, thus increasing my position by 19% to 4.5% of the assets in this account. The account is currently 43% cash which is used to sell cash secured put options.
Why more IBM? Buy "LO" and sell it high is my motto.
I increased my stake in IBM today by 19% in IRA #1, it now makes up 4.5% of the assets in this account. I paid about 179.5/share.
Cash still makes up 43% of the assets in this account which is used to sell put options.
My shares were called away at 195 so both the option buyer and I made $$$.
I looked at selling put options against Pioneer in the same account but they are priced too low for the risk involved in my opinion.
Why buy more IBM?
Because it's priced at 10 times its free cash flow numbers which primarily is used to buy back shares. In 2008 they only had $10/share in free cash verses an estimated $18 this year. IBM provides a reasonable dividend and earnings should double in the next 8-10 years so I'll continue to add on any weakness in the stock price.
Sold more put options against both LO and PM today in my personal account and my IRA. Sometimes it's better to be early than late.
In other news- Also sold put options against AIG today because the stock is still dirt cheap and I'd like to own more. I predict they raise their dividend to over $1/share later this year.
But perhaps you should look at owning some HOG.
I own a 3% position in my farm account and sold put options against it in both my farm and personal account today with the downgrade in the stock.
Also sold put options today against two well known tobacco stocks.
In other news-I also covered 25% of my short position in SPY because I no longer need the hedge.
IRA #2 took a 1.5% position in HOG today @ $68.147/share. Year to date this account is only up 8% equaling the 8% return for the S&P 500.
I have orders in to buy another stock that could fill soon.
WELLS FARGO & C 7.5% PFD--doubled my position to 2.7% today-paid--1206.66/share.
I'll keep adding if it drops because a 6% dividend is more than enough for me to live on.
Grandma buys more Wells Fargo 7.5% Convertible PFD @ 1204/share putting it in her top 10 for the first time. It's now ranked 10th and makes up 3.9% of her assets.
I would have bought her more but Grandma needs some new teeth and it's going to cost her.
It's a good day to sell call options against BX. That's what I did in a few of my accounts.
Buy BX "LO" and sell it high is my motto.