I sold at 8.55 with the idea of getting back in for a few shares at a lower price. What's a good target do you think. PSEC just seems to continue to sink.
ndibari73 - If you are right looks like I'll get called out and have to book some capital gains in addition to the dividends and call premiums. That;s okay with me too.
But what the heck, maybe I'll take a flyer and buy a few more shares of T while it's still below $35 and hold off selling calls on that batch.
So, have you got a sell order in at 42?
Buy the stock. Sell out of the money calls against the shares you hold and wait for them (the calls) to expire with the stock price still below the call price.
Repeat. The trick is to pick a strike price that is far enough out of the money so that you get to keep your shares. With T this is not too hard, since its price is not very volatile.
But ndibari73 is right in that it makes no sense if you are in the market to make a big killing.
To some, making a few bucks year in year out off selling covered calls on a stock with a safe dividend like T is just "small ball." But to a retired guy like me, it's okay. Preserving principal while making a decent return is my goal. If I were younger, I'd take more risk in pursuit of capital gains.
I guess I was also responding to those who were complaining that there was so little upside movement to the stock, who must be looking for those large capital gains. If that's what they are after, they need to be in other stocks besides T.
So I guess it depends on what you consider an acceptable rate of return.
To me, 5.5% plus whatever I get from selling the out of the money calls is cool. And it's a great feeling when your call position expires and you book the profit. Of course I do all this in a Roth IRA account so don't have to worry about taxes.
One that currently pays 5.5%. And if you are clever enough you can sell out of the money covered calls over and over and keep your shares, increasing your return. How hard is that?
I don't care if the stock price stays at $34-35 forever, I'm making good money.
Any reason for today's swoon? Did someone forecast more gun-control efforts as a result of the Louisiana murders?
Just trying to understand the drop back under $16
I sold $110 Jan covered calls. I'm gonna own this stock when oil turns around AND it will one day.
Anyone read the article on Yahoo from Motley Fool about the so-called "smartgun?"
For some reason no one seems interested in having one. Gee, I myself can only think of about a ZILLION reasons I'm not interested.
Anyone else care to weigh in?
I maybe one of the folks selling them. What makes you think CVX tops 100 by December?
You are right that most of these commentators demanding all troops be armed know nothing about the military.
I did four years in the USAF and no one was armed except for the Security Police, who had the requisite training.
The idea that we should just hand a Beretta 92 pistol to each troop at the recruiting offices would be a nightmare for the services. It will never happen and should not happen.
But some steps should be taken to increase security, and that probably does mean beefing up the presence of the Military Police of each service at recruiting centers and all installations.
Parent - Against my better judgment I'll just mention the obvious - you may add 4 more to your lunatic Islamist body count.
Not, as I've stated before, that it makes any difference really. Certainly lunatics of other persuasions will strike in the future and you can make your point one more time that we must be more concerned about them then madmen motivated by Islam.
To a rational person without an ideological axe to grind, yesterday's killings of the Marines in Chattanooga is simply one more reason to be on the alert, and if one chooses, ready to defend oneself.
Guess the covered calls I sold at $108 will expire worthless end of this week. Then my only problem is what price to sell the next batch. Always far enough out of the money, so I can collect the dividend and keep the stock for that day when the oil market finally turns.
Even if it takes a couple years - no big deal to me! I'm making money.
Great post! Now if more folks just had a sense of humor we'd all be better off.
And my point, which you either fail or decline to understand, is that it is a dangerous world we live in and it makes absolutely no difference what the motives of the various terrorists/murderers are - what matters is deciding whether and how to defend oneself and one's family against them.
Parent - I didn't realize we were keeping score here between the insane white supremacist body count and the crazy Islamist body count!
It's not a ball game, you know.
I truly fail to see the significance of what the motives are of any of the lunatics or the importance of whether there are more white supremacists versus Islamists running amok - the point is violent acts continue to occur and prudent people might therefore want to arm themselves.
However, if you would still like to tally up all the casualties of, say, the last 20 years and assign them to maniacs of various stripes, please feel free to do so, but I fail to see any useful purpose in such an exercise.
Bottom line, it's a violent country we live in - it makes sense to take steps to protect oneself.