Most of my accounts have 5-10% of their value in IBM and I'll be buying more via the dividends received.
I did sell some last year for tax reasons but now I'm looking to buy more.
I looked at IBM puts today and they still don't pencil out even with today's selloff-- IBM Oct 2015 150.000 put.. You'll only earn a little over 1% in 3 months but if you're willing to borrow $$$ against the farm in order to buy IBM at 150 then 1%/quarter looks ok.
I love IBM's free cash flow figures which is why I own he stock in all my accounts. If I could earn 2% selling the above puts I'd sell some maybe net week.
VZ is down over $1/share today so I bought some for IRA #3 and sold call options against it for added income.
Less put selling and more dividend and call option income is my new plan.
Other convertibles? Yes but only convertibles- WFC, BAC, KEY and a few others. I own zero REITs but a few energy LPs which I'm aggressively selling call options against.
Depending on her age I'd slowly start selling the S&P and move the cash into a short term bond fund if available and earn next to nothing until we have another correction. Selling 1% per quarter would be prudent until you're closer to 80% equities.
I know that until this year, none of my IRAs have kept up with the 500 so you could go to 10% cash today and still be ahead of me. Selling call options in a robust market hasn't been the best strategy over the period in question.
IRA #1 took a 1% position in the BAC/pfd today at 1116/share.
My cash is now down to 26% is this account. Equities that yield over 4.5% make up over 30%.
Stocks hitting new highs today.
We lose WW3 and like the Germans in WW1 are forced to pay war reparations to the victor. In our effort to not lose ww3 we'll financially lose as Eisenhower warned--
"Eisenhower expressed his concerns about the dangers of corporate control of Congress and massive military spending, especially deficit spending and government contracts to private military manufacturers, and coined the term "Military-Industrial-Congressional Complex"
Every year I pay tens of thousands of $$$ for insurance-auto, life, health and home, where I seldom see any return but it does give me peace of mind. I do like sleeping at night and that's how I think about gold.
I started buying gold in 2005 and I've never sold any of the metal but I have traded GLD on occasion.
For the record I also own silver but I use some of it for gifts and charitable contributions.
Would there have been less risk in buying gold last Friday?
What I achieved though selling the put options-if gold goes up I earn a small premium and the value of my existing gold stays in the 5-10% asset allocation I desire. If gold drops I'm forced to buy more through the liquidation of some of my bonds and I again I achieve my desired asset allocation for the metal.
Apr 25, 2011 11:44 AM
"Bought More Gold-$1500 plus mark."
As you can see by a post I made 2011, I'm committed to owning gold. Over the years I've occasionally sold a few out of the $$$ put options against GLD when it trades at new lows and I've managed to make a profit. My goal is to keep about 5-10% of my net-worth in the metal so in my case it's time to buy more.