LC Posted January 29, 2020 Posted January 29, 2020 Yes mostly covered calls on the full position in the account (e.g. if I have 950 shares I would write 10 contracts and cover the remainder with margin) Wrote on about 1/3 of my portfolio on: Altria/Philip Morris, AT&T, Visa, Iron Mtn 2-3 month expiration, was paid about 2-4%. OOM strikes by 5-7%. I plan on closing the contracts about a week prior to any ex-dividend dates where there is a high (judgmental) probability of being called. Which as of right now does not appear likely. And then I'll roll over the contracts again for another few months, unless sales & earnings really seem to be catching up with valuations. I've also been pretty lax with my documentation here. Sold MMM yesterday (ugh - industrial activity looks weak, glad to come away with more than I put in but still disappointing); Sold Waste Mgmt a few days ago; Sold ADS a few weeks ago; Sold Paypal (rolled into Visa). Proceeds went into opening a position in AT&T, paying down some margin, adding about equally to the names mentioned above; and one tiny corporate event. I'm fully invested but looking to hedge via covered calls on more of my portfolio if I can get good prices & low risk of execution. The other thing is I have relatively substantial 401k/stock grants which are invested in SPY index and a certain high-flying tech company. So I am looking to maintain about 30-50% total upside exposure from these two positions. Even there I am debating re-allocating the 401K outside of SPY and into something more defensive, but my options are limited and that has historically been a bad idea.
Castanza Posted January 29, 2020 Posted January 29, 2020 Wrote Covered Put Feb 28 CMCSA $42 at 0.43 T $36 for 0.27 Wrote Covered Call Feb 28 CSCO $50 for 0.53
gfp Posted January 29, 2020 Posted January 29, 2020 Just curious - when you say covered put are you short those stocks or are you just planning to keep the cash available through expiry? Wrote Covered Put Feb 28 CMCSA $42 at 0.43 T $36 for 0.27 Wrote Covered Call Feb 28 CSCO $50 for 0.53
Castanza Posted January 29, 2020 Posted January 29, 2020 Just curious - when you say covered put are you short those stocks or are you just planning to keep the cash available through expiry? Wrote Covered Put Feb 28 CMCSA $42 at 0.43 T $36 for 0.27 Wrote Covered Call Feb 28 CSCO $50 for 0.53 Cash looking to enter/add to position
TwoCitiesCapital Posted January 29, 2020 Posted January 29, 2020 Bought more SPY puts. After 2 days following my initial trade I am pretty convinced that the game is over ala 2000 in 2020. Care to PM me your thoughts on this? I also own minor puts on SPY & QQQ - but was doing it primarily due to the cheapness of VIX and only using proceeds from covered call sales. A little scared to re-enter heavily. Have lost money on puts nearly every time I entered them in a big way. Thought I was going to turn it all around in 2018 with decelerating economic indicators, cheap options, and etc but Q4 smoked me and ensured I had a sizable loss on puts. Still looking at leading indicators, corporate profits, treasury rates/curve, and etc and think it's pretty clear we're continuing to decelerate, but less excited to lose money betting on that again. Do you have a process or thoughts on how you structure/size the positions as well as when you enter/exit? I seem to do better when I trade the positions rather than hold them but then it's not a hedge for the portfolio - just swing trading for small profits.
Cardboard Posted January 30, 2020 Posted January 30, 2020 "Care to PM me your thoughts on this?" Ever read my book: "Cardboard on Cardboard"? Typical seasonal high is about to come or when people get their tax bill. Market has been marching straight up since early October. China economy is shut down for at least 1 week after end of 2 week holidays and it could last longer. Revenues are anemic (another thread on that) and everything has been about climbing valuation. Democrats are being ignored and one of the crazies has a good chance to win nomination. TLT is flashing red. GLD is flashing red. Oil is flashing red. Copper is flashing red. A year or so ago they were scared shitless about a potential slowdown due to trade war. Now we have 20% of world GDP effectively shutdown and the market is not worried about forward earnings? I could be very wrong on this. Although your post encourages me as shorts have given up.
Guest cherzeca Posted January 30, 2020 Posted January 30, 2020 "Now we have 20% of world GDP effectively shutdown..." referring to china I presume. well, an exaggeration but I get your point. but isn't china slowdown a bigger delta to their exports than imports? isn't a slowdown in china something the US should not fear?
Saluki Posted January 30, 2020 Posted January 30, 2020 Added a little SRG (close to the price Buffett bought at during the SHLD spinoff, but the company looks much better than it did 3 years ago), and a little FB and BRK and STNG. Nothing to write home about but just deployed the rest of my cash (about 1%).
Lance Posted January 31, 2020 Posted January 31, 2020 Trimmed IAU, SLV and TLT. Bought BP. Thanks Lance
boilermaker75 Posted January 31, 2020 Posted January 31, 2020 Been writing GILD puts, would like to acquire some with a basis < $63. Wrote some more 63-strike, Jan 31 expiration puts for $0.60 per share. Wrote GILD 62-strike, Feb 7 expiration puts.
Spekulatius Posted February 1, 2020 Posted February 1, 2020 Bought some odds and ends and a starter in FRA.DE (Frankfurt Airport)
boilermaker75 Posted February 3, 2020 Posted February 3, 2020 Been writing GILD puts, would like to acquire some with a basis < $63. Wrote some more 63-strike, Jan 31 expiration puts for $0.60 per share. Wrote GILD 62-strike, Feb 7 expiration puts. Wrote some 62.5-strike Feb 7 expiration puts. (Edit: $0.40 per share earlier this morning)
LC Posted February 6, 2020 Posted February 6, 2020 Added a little more BRK Ditto. 1.3x book is not a bad price for Berk esp. as it's a partially "defensive" stock with the cash and traditional businesses, and also exposed to market upside thru Apple
Gregmal Posted February 6, 2020 Posted February 6, 2020 Added a little more BRK Ditto. 1.3x book is not a bad price for Berk esp. as it's a partially "defensive" stock with the cash and traditional businesses, and also exposed to market upside thru Apple Indeed, on a relative basis its a lot more exciting to me here at 228 than it was at 21x.xx prior to the market going apeshit. You've probably got some favorable news flow heading into the AGM as well.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now