Lawrencewendall
Full time employment: Posting here.
I took my 2021 tIRA to Roth conversions and put it into PCI (9.79% forward yield) and ORC (13.81% forward yield). Time will tell if I was a fool.
No, it’s lending your shares to your broker who lends them to someone else and splits the earnings with you. Fidelity’s doc is here:
https://www.fidelity.com/trading/fully-paid-lending
I have a bunch of psychological, negative, quirks in my investing that I have tried to identify and compensate for over the years.
One of them is that I am a bargain hunter, which makes it difficult for me to buy things that are up a lot or hitting new highs. This quirk has cost me a lot of money over the years. Why? Because stocks that are hitting new highs tend to continue doing so, and stocks that have gone down (i.e. are "bargains"), continue to do so.
Some of my biggest winners (% wise) over the last few months have been stocks hitting new highs that are up big time from the March lows. But it has taken great effort on my part to hit the buy key on them.
The thing I've learned about stock picking, investing, and trading is that NO ONE is perfect. The ones that do well tend to understand their strategy or niche and most importantly have analyzed their history to identify mistakes to do better in the future.
The main thing I've learned is to invest money long term in solid companies with strong balance sheets, accelerating earnings, and a disruptive product.
I own (with basis listed): AAPL ($11.63, but raised by sell/buy back to raise basis i.e. capture LTCG at lower rate, original basis was $0.35), ABT ($25.15), ADI ($0.56), EW (orig. basis $0.67), MAR ($2.62), MSFT ($31.40). All of these are in my top seven or so holdings by market value.
Q for you guys - do you all participate in your broker’s stock lending programs? They have different terms for it “enhancement” etc. It sounds like there’s really no downside. Maybe there’s really no $$ in it either?
Q for you guys - do you all participate in your broker’s stock lending programs? They have different terms for it “enhancement” etc. It sounds like there’s really no downside. Maybe there’s really no $$ in it either?
Just as a bonus, if you've read this far: I've held some XRP (crypto) for a few years. This one is a wild card, IMO. Not sure what to expect of it, but it might pop if the Ripple SEC lawsuit gets settled this year, and might go crazy if banks start using it in larger amounts in coming years. I should probably also add some GBTC on a dip.
Someone tell me if I am crazy, but as we all look for yield on our money, I found something that I like.
So Delta Airlines (DAL)
I highly doubt it will go out of business and I think it is safe to assume that a year from now it will be back to normal.
With that said, you can buy DAL today at say $43.69 and write a covered call for next January 2022 $30 for $16.4
So you are shelling out $27.29 today, and making $2.71 if it trades over $30 next year. That yield is over 10% annualized.
There are other combos, like you can do it with a $50 call and even pocket some over today's price.
Worth the risk?
I've been playing with Apple calls as I have a little too much. I'd been going out 2-3 weeks for 8%-10% OTM. I need to sell one more for 2 weeks out but I'm going to wait till APPL settles down after this adjustment.I’m analyzing selling more covered puts as a way to earn (on stocks I like anyway) while my hunk of ballast (cash) hangs out, waiting for a market correction. I don’t mind working at it and maintaining it weekly and monthly, as it makes sense. I’ve started analyzing at the top of my “buy more” list, but it occurred to me that some of you are already doing this and might have some favorites I could research.
For example, I like both ARKK and AAPL over the long run. If I choose options about 30% under current price, I could earn $73 for ARKK and $16 for AAPL. At the moment this gives me me an annualized earn of almost 8% if I repeat monthly for ARKK, but only 2% if I do the same for AAPL. (Earnings divided by reserved cash, x12)
My question is - how are you finding your optimum stocks, then optimal put price to maximize your earnings? This is within an IRA, so no tax implications. TIA for any suggestions.
I’m analyzing selling more covered puts as a way to earn (on stocks I like anyway) while my hunk of ballast (cash) hangs out, waiting for a market correction. ........, I like both ARKK and AAPL over the long run. If I choose options about 30% under current price, I could earn $73 for ARKK and $16 for AAPL. At the moment this gives me me an annualized earn of almost 8% if I repeat monthly for ARKK, but only 2% if I do the same for AAPL. (Earnings divided by reserved cash, x12)
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Yes, this will end badly, as all speculative markets do. How burned I will be when that (eventually) happens remains to be seen. (I hope to be able to get out and not ride it down, but future actions are always suspect.)
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E*TRADE just finished getting my accounts transferred over from Vanguard - and I wish I had done this years ago!
They have SO MANY tools! Conditional orders?!?! Options income finder? Ok gotta go, gots lots to read. Will let y’all know if I find anything good. And, as a PS, I’m glad I picked up some PLTR a couple of days ago