What did you trade today and why?

junkanoo said:
I'll be more specific. I put the chart up to show how little variation there has been in NAV over the last year and how wide the variation on price has been. All of this was accomplished when the dividend has been constant for the full 12 months.
Click to expand...
Got it. D
 
Rhythm Method said:
I want to like and dislike this post! @dickoncapecod - thoughts?
Click to expand...
Hi. Well, everything was hunky-dory until mid-Feb, a little less than 30 days ago. The reason for the recent PDI NAV drop is pretty clear.

1. In that time period,
HYG is down 1.2%, LQD is down 1.5%, MBB is down 1.4%, the 10yr is down about 1.3% and PDI NAV is down 21c or 1.3%. SPY is down more. Fixed income portfolios (except some BDCs!) are marked to market, and if their portfolio holdings are falling their NAV also falls.

2. Fear that a (rather modest) NAV decline alone may result in a distribution cut is based on a misunderstanding of bond mechanics. A million dollar face bond with a 5% coupon pays $50,000 per year whether it's current market price (NAV) is 100 or 120 or 80. The current market price of a bond does not impact the cash flows from it ---- so the cash flows into a CEF portfolio that permit it to pay distributions need not be and typically are not impacted by changes in NAV (up or down).
Regards, Dick
 
NAV declines don't effect distributions based on current holdings but PDI, for example, has a 28% turnover rate. What happens when those 28% are replaced with higher priced bonds with lower yields? Will PIMCO go further out on duration? Will they increase their unrated holdings? How will they maintain their levels of distribution if they don't? Mark to market measures will surely decline if this happens, right? I think it's hard to ignore NAV trends from an income perspective, even from a "trusted" company like PIMCO. Should this worry be saved for another day...cross that bridge when we get there?
 
I'm investigating the alt-cash or cash plus, since after selling international and national gains over the last 18 months, I find myself at a ludicrous cash figure of less than 500k, which 10 years ago I would have accused you of calumny if you accused me of having that much in cash.
I'm down to my lowest level of stock fund allocation, but income + my SS is now more than our essential expenses, which seems............weird.
 
Micron Technology (MU) surged today. Must be because Oracle reported good earnings last night. I rolled several OTM covered call contracts on MU and semi ETFs from 3/13 to 3/20 to higher strike prices. Also rolled some OTM put contracts to a week later, and to lower strike prices. Got some nice cash for the effort.

In after-hour trading, several semi stocks already gave up part of today's gain. Yep, this market is treacherous. Can't take any gain for granted.
 
I just placed a market order for DMO and I ended up paying .10 more than what the last price change was, which was +.02 at a price of $10.83 at the time. Can someone please explain why this happened?

Thanks,
Todd
 
Budswhizzer said:
I just placed a market order for DMO and I ended up paying .10 more than what the last price change was, which was +.02 at a price of $10.83 at the time. Can someone please explain why this happened?

Thanks,
Todd
Click to expand...
FYI, DMO was one of the funds that Fidelity put trade size restrictions on. I had a heck of a time selling it. Try and keep your position small.
 
Budswhizzer said:
I just placed a market order for DMO and I ended up paying .10 more than what the last price change was, which was +.02 at a price of $10.83 at the time. Can someone please explain why this happened?

Thanks,
Todd
Click to expand...
You answered your question. It's a market order on a low volume traded stock. Limit order is what you use to buy at a specific price.
 
Budswhizzer said:
I just placed a market order for DMO and I ended up paying .10 more than what the last price change was, which was +.02 at a price of $10.83 at the time. Can someone please explain why this happened?

Thanks,
Todd
Click to expand...
What SureWhitey said. Last price is history ... so do Limit orders to avoid an unknown future.

Additionally, quoted price are for full lots ... so if less than full lot, it doesn't apply on a market order.
 
For something infrequently traded or thin like DMO, I place an offer to buy at $0.01 ABOVE the displayed offer price. Almost always get filled, 95% of the time at current offer or better. I think it helps avoid sniping algorithms that buy in front of you and push up the price, forcing you to chase it for $0.03 or so. I got wise after having that happen to me a few times.

Kinda nervous market, isn't it?
 
Started position in TLTW. Thanks richardsok.

Also small footholds in OXLC and XFLT. Maybe finally nearing a bottom??

Added a bit of GOF.

Still 35% cash. Looking for some flatening in Pimco fund NAVs.

Bill
 
I sold off some of the lower yielding payers that recently went ex- to invest in higher yielders like PHK (that I started today with about 100 shares) and lin ater ex-dates like WDI......best but not critical for market to swoon.
Regards, Dick
 
Bought a few shares of VTV Vanguard Index Value ETF
VYMI Vanguard International High Dividend Yield ETF

past 6 month performance of both is much higher than SPY (0.73%)
 
Budswhizzer said:
Hi, I was wondering if there are any Pimco investors here that play the other side when a fund goes ex/rec. What I mean by this is, is it a good idea to buy after the ex/rec date to pick up on the earned back distribution? It seems like another way to earn more than just the dividend. The last few months certainly was not the time to do something like this. But, once the NAVs and MACDs improve, would this be a good move or not? What are your thoughts on this?

Thanks,
Todd
Click to expand...
So here’s a tiny sample size from just a couple days. GOF went ex today and is up nicely. So you would have been better off buying the dividend. PDI on the other hand went ex yesterday and is down a fair amount in the last two days. So you would have been better off selling the dividend and buying back today. Which leads to the conclusion that nobody knows nothing.
 
COcheesehead said:
So here’s a tiny sample size from just a couple days. GOF went ex today and is up nicely. So you would have been better off buying the dividend. PDI on the other hand went ex yesterday and is down a fair amount in the last two days. So you would have been better off selling the dividend and buying back today. Which leads to the conclusion that nobody knows nothing.
Click to expand...
Don't be confused about the green Fidelity is displaying for GOF. They do NOT factor in the dividend deduction on ex-date, for any security. Check the chart for closing price on previous session against what it opens up as on the current. I really wish they wouldn't do it this way.
 
Randy145 said:
Don't be confused about the green Fidelity is displaying for GOF. They do NOT factor in the dividend deduction on ex-date, for any security. Check the chart for closing price on previous session against what it opens up as on the current. I really wish they wouldn't do it this way.
Click to expand...
Yes this is very misleading IMO. It basically rewrites history on ex-div.
 
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