Recent content by DR1959

Anyone familiar with this deal? I few weeks ago I got a tender offer to tender my shares to Jetflue for $34 a share. I paid $20. So I went for it. I got notice Friday it went thru, though I haven't seen the money yet. So my question is, Why not buy boatloads of shares on the open market at...

The prices does not matter! Say you buy O today Price is $70.76 today So 100 shares is $7076 A $55 option for January 2023 is about $16 So they pay you $16 to buy your O anytime before January 2023 for $55 Your net investment out of pocket today is $7076 - $1600 = $5476 or $54.76 a share. So if...

I play with a portolio that is right now at $1,160,000 But not all of it is investable short term. I would say only about $300K of it is short term that I buy and sell options with. The rest, I will write covered calls against long term plays with a goal of not losing my stock. That does...

VER.PR.F is being called.

Nice I got 3 calls expired. One put. One will be assigned. Profit for week is $2442

I would never pay over $26 for a $25 par prefrered. But if I applied that logic to most of my stocks I would be selling. Preferreds are different than common as they have a finite life with a set value. Price appreciation is a rare treat, just noone knows why it appreciates or why it will...

So what I do if a covered call goes bad or looks like it is going to go bad is roll it. So if stock is $30 and I have a covered call $30 and I want to keep it, I roll it to another week or month. This gives me additional time premium and a chance for it to drop. Sometimes if my original covered...

Ah, I see that. Yeah, so the numbers should read: Buy Stock at $30 Sell $10 call for $20.05 Net cost of this play is $9.95 Collect Dividend and hope the option doesn't get assigned until the end. If it goes at end, profit is $.05 a share plus the dividend. Risk is stock would have to drop to...

Don't see any mistake. Which example? Buy Stock for $30, sell call for $10, collect a premium of $20,95 which gives me a cost of $9.95. So called at $10, I make a nickel a share but sit on dividend for a year or so. Dividend is at my net cost of $9.95, so if dividend is 5% at $30, at $9.95 it...

I use options to help add income. I used to play market to grow wealth, that worked very well through the years. Buy and hold growth stocks. The issue there is your wealth is tied to the health of the market. When you trade for income, you are always protected to a degree. A covered call that...

Throw it into something else, or even buy it back on a dip. Hard decision because you know it can't keep going up and eventually slips to $25, but so hard to know when that drop starts. I have high yield bonds in the same boat, I know they will drop to par, but right now paying 7% is nice to...

Been doing covered calls and cash puts for years. Works great for me. Another strategy I employ is buying a common stock that pays a nice dividend. I then write a in the money LEAP, which is a far out covered call. I only do if less, so if stock purchase is $30, then I look to get a call with...

At what price would you consider selling a high preferred. I own PMT-PR-B, bought in at $24.75, trading at $27.46. Trying to decide if I should take the almost 3 points and run or keep collecting the div. Call date is still 3 years out, but dividend is $2 a year now. Thx

Bought more GBTC I also sent money to blockfi They pay 10% back on stablecoin which is USD cash. Can't beat that yield!! They need cash to margin all the people that want to buy bitcoin.

What I do is double my DCA when market crashes. So if I was doing $50 a week, I would go to $100. I DCA now with certain funds. Stocks, I buy and write covered calls, so if I get caught in a crash, I still get some income out of it. If I get called, I still make money. Anytime you make...