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.
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?
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.
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?
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?
"DISH Network Corp. is strong this morning which could be related to a reports Verizon is mulling a spectrum deal with the company."
Bought more Berkshire today @ 126.08/B share in IRA #1 using cash that freed up from an option that expired Friday. Also sold more out of the $$ put options in the same account.
Why BRK you may be asking? Because it's a $$$ making machine that should start paying a dividend about the same time I start taking cash from my IRA.
In other news-- my cherries are beautiful this year and they're all organically grown which means I'm too cheap to spray them.
and she also bought more WELLS FARGO convertible 7.5% PFD.
LO is still her 3rd largest holding behind only PM and BRK.
She paid 75.57/share for WMT, 1221 for WFC PFD and sold LO for 61.07 per share.
Sold 12% of my LO shares in IRA #1 @ 60.29/share and bought IBM @ 182.66/share.
LO currently makes up 8% of the assets in this account and is still its largest position and IBM is now a 3.8% holding.
Also bought some XOM today in Roth IRA #1 @ 82.2/share using cash on hand. It's a 3.44% position.
My IRA thanks you--I'm looking at selling call options against my position but there's no hurry because AIG should be trading near 60 which will only increase the current option premiums.
I've been talking AIG up for some time---"
Did More GMCR and AIG Today
Why GMCR? They reported a good quarter and the stock has dropped 12% on the news so I sold more puts against it today.
Why AIG? It still trades at a 45% discount to book value which will only be enhanced by an aggressive share repurchase program which is coming. Also, when you hear the name AIG don't you you think of bailout? Everyone hates this company now even though the new AIG has nothing to do with the former. I now have 1% of my assets in AIG with more coming as cash comes into my account.
PM was priced at 90.5 at the time of these moves with AIG over 39 and GMCR in the 43s."
Feb 11, 2013 11:04 AM
AIG just added another $2 billion to their share repurchase and they're buying back shares $17 below book so all buys are accretive to earnings. By my calculations they'll earn another $600 million on every share repurchased at 55 on their $2 bills.
Good times for investors.
"APPLE PICKER?...."??? It's raspberry and cherry picking season now. Apple season starts in a few months.
I'm building a new woodshed and storage shed so back to work I go----------------
In other news-I did buy shares in a spec stock-SODA, today and sold call options against said shares, so the drinks are on me.
Bought AIG Warrants today in account #2 and have orders in to buy more in my Farm account. I paid 25.25/share. I'm also short call options against both the AIG shares I own and the warrants I just bought.
American International Group Inc AIG/WS
"The contracts advanced 1.1 percent to $24.03 at 10:05 in New York, beating the record of $24 on their first day of trading in January of 2011. The warrants, which traded as low as $4.66 in October of that year, allow investors to buy AIG common stock at $45 apiece by Jan. 19, 2021. Shares of the New York-based insurer climbed 0.4 percent to $53.83 and are up about 20 percent in the past year."
@ $51.045/share. This is a 4.67% position. Cash now makes up just 5.4% of the assets in this account.
Top holdings in this IRA: *PM- 30%, STX-12.3%, IBM-12%, BRK-9%, AIG 7.75%, LO 6.72%, WFC-4.67%, BX-3.9%, COP-3.8% and MRH- 1.35%.
*Note-currently short June-85-call options against PM that are currently in the $$ so more cash should be coming soon.
And she added to her holding in KEYCORP NEW PFD 7.75% SR A KEY/PRG. It has a 6% yield but just went XD today. She paid $128.50/share.
Cv into 7.0922 of KEY
In my Roth IRA I sold some LO and put 25% of the proceeds in BRKB at 127.40/share. The balance was used to sell cash secured put options against another stock.
More BRK will be bought on any correction. BRKB now makes up just 3% of the assets in this account.