Initiated a new position in two IRAs today-TRI CONTL CORP--TY, IRA #4 took a 2.18% position at 21.33/share and IRA #3 took a .7% position at 21.38/share.
It trades at a 15% discount to NAV and has management fees under .5% per year.
In the same account I tripled my positions in both STX and INTC and sold call options against them. Both these companies go XD in early August. STX traded under 50 today a new yearly low. I paid 50.56 for STX and 31.23 for INTC.
This account is now out of cash until July 17 when one of my stocks should be called away.
Current price-81.65 + .86...............
My year end price is 86.68 plus you'll be paid two more dividends of 1.02/share. Business in Europe should continue to improve.
In other news- can't buy LO and sell it high any more but you can own a little RAI/LO and sell call options against your position for added income.
In IRA #2 I raised my position by about fivefold to just under 2% of the assets in this account but I also sold call options. Also sold out of the $$$ put options against it in IRA #3.
It's currently trading near KO's original purchase price. They own 16% of the outstanding shares and in my opinion will buy them out in the very near future.
The options expire in Jan of 2017 which means you only earn 2.7% in 1 year and 7 months or about 1.9% annualized.
Discover Bk 0.75% CD 01/03/2017
Low interest rates are crushing option premiums. If you could earn 4% on two year CDs I'm sure the returns for selling puts against BRK would be much higher. If we live another 10 years perhaps we'll see interest rates go up a few 100 basis points.
Crapola. It was too good to be true.
When the price reaches 18.33 and trades on or above there for a month my shares can be forced to convert. In essence, my maximum return is 6% per year unless the stock gets a buyout offer or goes up dramatically.
Maybe I'll get lucky.
How is it that they could force conversion? The equity is non callable.
"A preferred stock or bond that cannot be redeemed whenever desired by the issuer."
KEYCORP NEW PFD 7.75% Convertible. KEY is currently priced in the 15s and the conversion strike price is in the 18s. Current yield is just under 6%.
All buys were done in IRA #1. I increased COP and WMT by about 200% and sold call options against them and raised KEY to about 2.45% or about 50%.
IRA #1 is now down to about 29% cash which is used to sell cash secured put options.
Today with VGR trading over 23 she sold 85% of her holdings and will buy it back if it drops under xxx. The balance of her shares she'll hold.
Wouldn't It Be Nice
Song by The Beach Boys
Wouldn't it be nice if we were older?
Then we wouldn't have to wait so long
And wouldn't it be nice to live together
In the kind of world where we belong
You know it's gonna make it that much better
When we can say goodnight and stay together
Wouldn't it be nice if we could wake up
In the morning when the day is new?
And after having spent the day together
Hold each other close the whole night through
Happy times together we've been spending
I wish that every kiss was never ending
Wouldn't it be nice?
Maybe if we think, and wish, and hope, and pray, it might come true
Baby, then there wouldn't be a single thing we couldn't do
We could be married
And then we'd be happy
Wouldn't it be nice?
You know it seems the more we talk about it
It only… Full lyrics on Google Play
New Beach Boys movie coming out soon.........
High and low over the last twelve months--1,180.000 - 1,249.000.
Bought more in my personal account today in account #3, paid 1182/share. Currently trading at 12 month low.
Purchased using proceeds from LO/RAI merger.
Quarterly Dividend--- 18.75/share.
7/18/14--"Grandma Sold 90% of her COP shares
It was called away for the dividend yesterday because she was short the July 72.5 call options-certainly not her best move. The remaining shares are all more than paid for via profits."
She took a 3% position in COP today but sold call options against her shares. She did it for the 4.5% dividend yield and she earned a 2% option premium that expires in August. If shares are called away at 65, all profits will be tied up in remaining shares.