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Brad Castro  

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  • AT&T And Consolidated Edison A 'Tell' Of 2 Champions: Part 3 [View article]
    Great strategy, Antonio -

    If you incorporate the ex-dividend date - especially on a high yielder like T - you'll generate even higher annualized returns.

    I also like to factor in basic technical analysis and only write my puts when a number of factors - fundamental, technical, valuation - line up.

    (I look for what I call Limited Downside Situation - multiple reasons why a stock is unlikely to trade lower, or lower by much, in the near term.)

    Also, don't assume that assignment is up to Mr. Market. There's a lot you can do to avoid it on your side.

    In fact, I refer to my own put writing operations as "Being the Insurance Company from Hell" - where the objective is to collect lots of premium and then avoid like the plague paying out any claims (which I define as either buying back my puts for a loss or being assigned the shares against my will).

    My philosophy is that I determine when I buy the shares, how many, and at what price, not Mr. Market.

    Continued success to you . . .
    Aug 30, 2014. 09:15 AM | 1 Like Like |Link to Comment
  • AT&T And Consolidated Edison A 'Tell' Of 2 Champions: Part 3 [View article]
    "You must have extra-special, high-dividend shares not available to the rest of us who have to settle for 5.3%."

    "I have no opinion on your investment priorities but I do cringe every time I read some DGI acolyte touting out-sized yields when they really mean their yields on 5, 10 or even 20 year old dollars."

    Damn - havin' a bad day, LB?
    Aug 29, 2014. 08:37 PM | 7 Likes Like |Link to Comment
  • Why Mattel Shareholders Should Be Concerned [View article]
    I'm really interested in seeing how the Mega Brands acquisition performs.

    I was at Target the other day and saw them for the first time - there was a Halo series and a Call of Duty series on display.

    I thought that was a clever back door attempt at responding to changing marketplace realities.
    Aug 29, 2014. 12:32 PM | Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    Not listening . . .
    Aug 28, 2014. 02:35 PM | 2 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    lol - having kids is a kind of self-imposed luxury tax.

    Think how much more you've been able to compound over the years by not paying that tax:

    http://cnnmon.ie/1plAtA5
    Aug 28, 2014. 10:06 AM | 3 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    "Articles like this are great precisely because they follow one person's reasoning. Then other people can read it, figure out what applies to them or what doesn't, ask questions and get answers. It's a fantastic learning and sharing opportunity."

    Definitely. "Comparing notes" is an incredibly powerful learning tool for everyone involved.
    Aug 28, 2014. 10:02 AM | 4 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    "Neither do guys who get canned at age 48 and then decide to be kept men for their Sugar Mamas!"

    You're not kept - you're a widely read and respected financial journalist.

    Not stop trying to make the rest of us feel jealous . . .
    Aug 28, 2014. 09:59 AM | 2 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    "The income tax deductions an owner gets have to compete with the standard deduction. Everyone gets at least the standard deduction amount, but the owner's additional tax deduction is only to the extent that it is more than the standard deduction. Plus the longer an owner owns a house, the lower the income tax benefits are, as the mortgage interest rate deduction drops."

    Definitely true in our case, Christine - I can't remember the last time we didn't take the standard deduction.
    Aug 28, 2014. 09:52 AM | 1 Like Like |Link to Comment
  • A Simple Screening Technique To Improve Returns [View article]
    Careful - that might go to his head!
    Aug 27, 2014. 03:09 PM | Likes Like |Link to Comment
  • eBay Update: Baupost Entry, Spin-Off Rumors, And Amazon Competition [View article]
    Sweet timing, Steve.

    Check out an 18-24 month chart on the stock - seems like we're getting pretty close to the high end of the range here.

    Doesn't mean the stock won't break out above these levels, but I personally fell for the false breakout in March (last time the spin off rumors/speculation were going) and I spent the next 5+ months repairing a short put trade.

    If you had a full 100 shares, you could write at the money covered calls to boost your overall returns while simultaneously protecting you some on a pullback.

    Still, congrats on a successful trade.
    Aug 27, 2014. 03:05 PM | Likes Like |Link to Comment
  • How Chesapeake Energy Plans To Unlock Substantial Shareholder Value [View article]
    You're awesome, Mcafee . . .
    Aug 27, 2014. 02:58 PM | 1 Like Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    "CNBC piece yesterday cited average US rent cost now 33 percent higher than owning. (Depends where one lives.)"

    Thanks, Frank - that sounds pretty realistic.

    I'm still open to being persuaded otherwise, but it seems to me the only way renting makes more financial sense than owning is if you're expecting a significant decline in home values or if you're not planning on living in the home/area for very long.

    And if you can swing a 15 year loan vs. a 30 year loan, you begin building equity a whole lot faster.

    We started with a 30 year mortgage and refinanced to a 15 year loan 5 years into it - after fees and such, I don't think we actually had ANY equity when we refinanced. We were also paying 7% back then

    Now the house will be paid off in about 4 years (vs. 14 if we'd stayed on the original schedule).
    Aug 27, 2014. 12:41 PM | 2 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    "depends on region. Where I am (near enough to military bases for a vibrant rental market), 3k of rent gets you something around 600k in value."

    Thanks - I guess that's the key factor.
    Aug 26, 2014. 03:03 PM | Likes Like |Link to Comment
  • Dividends Or Dropped Calls For Telecom Investors: AT&T Looks Rock Solid Compared To Verizon And Centurylink [View article]
    Re: the other kind of technical analysis, while I see current support in the $34-$35 area, I'm personally waiting to see if the stock pulls back to a lower support level closer to $32.

    That to me would represent a much better opportunity.

    I think you're 100% dead on re: the capital intensity/debt levels of the business model.
    Aug 26, 2014. 01:20 PM | Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    To follow up my question - let's go with the $300K home scenario.

    If you were going to rent a home valued at $300K, you would probably be paying at least $3K a month, correct? Possibly more.

    Compare that to having $300K in equity that you pull out and invest. I'm personally comfortable with the assumption that I could consistently generate an annual income yield of 12% with very conservative, investing-oriented, option strategies (I'm confident I could do better, but since it's the roof over my head, I wouldn't want to do anything to jeopardize that).

    But that would still only produce $3K a month (and that's pre-tax as well), so all I'm really doing is covering the rent (and maybe not even all of it). I'm not actually growing any additional wealth - or keeping pace with future rent increases.

    I could see the rationale if I were only paying $1500/month in rent and generating $3K in investment income each month, but wouldn't that require downsizing?

    And even so, why wouldn't I downsize and still own and then invest the other half of my equity? That way I still wouldn't have a mortgage + I would be generating far more cash flow with the investment income from the $150K of equity I pulled out when I downsized?

    It seems that the mathematical comparison shouldn't be between your investing returns and your mortgage rate but between your investment returns and the ratio (percentage) of your rent to the value of the home.

    Or am I missing something?
    Aug 26, 2014. 01:11 PM | 7 Likes Like |Link to Comment
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