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.
In three of my accounts and used some of the cash to buy BRKB. My plan is to take some profits through the summer and raise cash.
Grandma sold 28% of her shares in LO but it still makes up 6.5% of her holdings and is still ranked #3 in her top 10 holdings behind only BRK and PM.
But only 28% of her shares. It's still her third largest position at 6.5% of her portfolio.
I also sold some shares in IRA #4.
Merger discussion with RAI have moved the stock from 50 to 60 this year.
I was short the 5/23, May, Call Options and 2/3 of my shares were called away because GMCR was in the $$ by 3 cents. I'll hold on to the balance as a long term investment.
In IRA #2 I sold covered calls against my recent purchase of BX today with it trading over 31. I'm currently only up about 6% on the stock and if it's called away, I'll be up about 20% which will be held in the form of shares in BX-another trophy for my IRA.
Her account was up 3.5% today led by a strong showing from LO which overtook IBM to become her largest holding. If she continues to compound her money at 3.5% per day her current $705 account value should reach over $1 million in the coming months.
If the stock should rise in the near term, She'll sell call options against it for added income. This is a 2.4% position and her cost is just under $49/share.
She'll use VZ as a replacement for her fixed income portfolio. Her cash position is now down to about 3% but she's able to live off dividends she's earning in this account and she has more cash coming soon because some of her holdings could be called away due to being short covered call options.
Note: In her income bracket dividends are federally tax free whereas interest on bonds are fully taxable. You could say that our current tax code and low interest rates are forcing retirees and individual investors to sell bonds and buy equities.
Also bought it in IRA #3 but sold call options against it for added income. I'm treating VZ as a substitute for fixed income bond holdings that yield less than 3%. Between the dividends and option premiums I hope to earn over 15% per year.
Grandma's position is a 2.4% stake and IRA #3 is 2.25% and 94% of the shares could be called away at 50.
Page 16-BRK 2013 Annual Report---Cost basis DTV--$1.017 billion. At year end we owned 22,238,900 or 4.2% of the company.
During the first quarter of 2014, BRK upped their shares owned to 34,514,700 shares or 6.85% of the company and I'm not sure what the cost of those new shares were.
The deal is off and the stock is down 10%. I know next to nothing about the stock but often after a deal falls apart there's $$$$$$$$ to be made.
Sold put options against the stock today.
"DirecTV shareholders will get $28.50 per share in cash and $66.50 per share worth in AT&T stock. In the stock portion of the deal, they will receive 1.905 AT&T shares if AT&T stock price is below $34.90 at closing or 1.724 AT&T shares if its stock price is above $38.58. If AT&T's stock price at closing is between $34.90 and $38.58, DirecTV shareholders will receive between 1.724 and 1.905 shares of AT&T stock, equal to $66.50 in value."
It took a while put as usual at least with respect to IBM, Cramer was wrong.
I'm long the stock but short call options against my position with strike prices ranging between 190 to 220.
IBM still has a dividend yield higher than 5 year treasury bonds and trades at 10 to 11 times its free cash flow. Most of their growth is purely a result of their aggressive share repurchase program which in my mind adds value because interest rates are low and IBM trades at a very low price to free cash flow ratio.
One should buy IBM when Cramer says to sell it and sell call options against it when he says it's a buy.
at about 82 due to call options I was short. The option owner called it early for its dividend because it goes XD today.
Also sold put options against PSX that "puts" me back in the stock under 75. This is my way of trading a stock.
Also sold put options against the SPY shares I'm short that will cover my position if SPY drops under 183.
SPY currently trading around 187.5/share.
Here's a progress report on the account I started for my niece in August of 2013.
I transferred to her the following stocks from my account, worth $606.00---AIG-2 shares, IBM-1 share, KO-3 shares, LO-3 shares and PM-1 share. All dividends have been reinvested so she now has partial shares of all of the above. Her account is currently worth $692.
If I had to invest more $$$ for her today, what should I buy?-
Purely as a hedge against my stock holdings and put options I'm short.
Only shorted SPY in account #1, #2 and my Farm account. The value of my equities exceed my short by about 20 to 1.
I'd rather short SPY for tax reasons than sell long term holdings like BRK, LO, PM, WFC, AXP, USB, MO and a few others..
If I should lose $$ on this short, I'll offset the losses with option gains which are all considered short term gains regardless how long they've been held.
Why short now? It's May-sell in May and go away- and the Russians are coming.
I too have small positions in most of my accounts and I'm short 52.5 put options in my farm account so I may be buying more soon.
If it drops under 53, I'll start buying it in my IRAs.
"Adjusted net earnings, excluding a one-time gain from the sale of CF's phosphate business, fell to $247.5 million or $4.51 per share from $406.5 million or $6.47 per share a year earlier."
(Reporting by Rod Nickel in Winnipeg, Manitoba
And the stock drops under 240 on the news.