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  • Generating Year-End Income (Part I): Covered Calls [View article]
    Hi brooks1988 - The selection of the strike month for the covered call trade is primarily a function of the underlying volatility of the stock. The higher the implied volatility the higher the option premium. You want to balance premium yield and margin of safety (i.e., strike price). Ideally, you don't want your stock to get called away so you need an appropriate cushion between the underlying price and the stock price. For these low beta stocks, we have found that a 3-6 month timeline is ideal for a covered call trade...targeting a 2%-3% premium yield with a 6%-8% margin of safety. The goal is to rinse and repeat the covered call process every 3-6 months to generate additional income.

    That said, for higher volatility stocks, a 1-2 month time frame may be appropriate. Hope this helps...
    Nov 17, 2011. 11:51 AM | 2 Likes Like |Link to Comment
  • High Yield In A Slow-Growth World: Mortgage REITs [View article]
    on3mor3cas3 - We focused on the more seasoned, actively traded mREITs for this article. There are several other mREITs out there that could have been included in an expanded analysis, including CYS, CMO, ANH, and IVR...
    Nov 17, 2011. 09:55 AM | Likes Like |Link to Comment
  • High Yield In A Slow-Growth World: Mortgage REITs [View article]
    Thanks searcher - you are spot on about the other relevant data. We'll work on a follow-up piece with some additional details for you and other readers. Cheers.
    Nov 16, 2011. 06:04 PM | Likes Like |Link to Comment
  • Mining Stocks Are Appealing, But No Replacement For Owning Precious Metals [View article]
    Steve - you can actually open a precious metals IRA to purchase physical metals in a pretax account. See the APMEX link below...

    http://bit.ly/vczIzn
    Nov 15, 2011. 12:44 PM | 1 Like Like |Link to Comment
  • The Gold Vs. Silver Dilemma [View article]
    Macallanlover - We own and buy physical silver regularly (almost regardless of price) as we are worried about the long-term debasement of paper currency. We use ETFs to trade in and out of the market...but ETFs are no substitute for physical...
    Oct 27, 2011. 09:11 PM | 3 Likes Like |Link to Comment
  • Looking For An Alternative To Gold And Silver? [View article]
    Vuke - While it is illegal to melt currency, we suspect that Kyle Bass is making a play on the “change in composition” and that these nickels will go out of circulation...
    Oct 4, 2011. 07:36 PM | Likes Like |Link to Comment
  • Why Shorting U.S. Treasury Bonds Is A Safe Investment [View article]
    We are with you JK...Long TBT...
    Sep 17, 2011. 06:01 PM | Likes Like |Link to Comment
  • How Far Can Current Rally Go? Factors To Consider For Next Week [View article]
    JK - Your sub 1000 target for the S&P is spot on. Keep up the good work, bro...
    Sep 17, 2011. 03:47 PM | 2 Likes Like |Link to Comment
  • 3 Catalysts To Jump Start MDU Resources' Dividend Increases [View article]
    Nice analysis, TJ. Keep up the good work, bro...
    Sep 17, 2011. 03:36 PM | 1 Like Like |Link to Comment
  • Will Mortgage REIT Investors Be Left Holding The Bag? [View article]
    Pot calling the kettle black, hermit99? Your comment history suggests that you too enjoy the "soapbox" that SA has provided for you...
    Sep 17, 2011. 03:12 PM | Likes Like |Link to Comment
  • What Conservative Income Investors Should Do In The 'New Normal' [View article]
    Thanks for the response 5+. Agreed, preferred shares and bonds should definitely be considered. The idea behind the article was more "strategy" oriented (i.e., segmenting assets into risk-adjusted yield buckets in conjunction with an allocation strategy) vs. specific recommendations.
    Sep 16, 2011. 04:24 PM | Likes Like |Link to Comment
  • Will Mortgage REIT Investors Be Left Holding The Bag? [View article]
    Hi Bill - It's the opposite of a "rising tide lifts all boats". While CIM may not be forced to delever per se, forced sellers in the agency market will likely put pressure on the non-agency market too. So CIM's book value could take a hit. Also, the headline risk from an SEC ruling could cause a mass exodus from all mREITs...
    Sep 16, 2011. 04:02 PM | Likes Like |Link to Comment
  • Will Mortgage REIT Investors Be Left Holding The Bag? [View article]
    Hi skyraider - see comment above to hermit99 above. If you want to post a specific question, we would be happy to address it for you.
    Sep 16, 2011. 03:05 PM | Likes Like |Link to Comment
  • Will Mortgage REIT Investors Be Left Holding The Bag? [View article]
    Hi hermit99 - Parsimony (as a firm) is in the process of becoming a Registered Investment Advisor. The description in our profile is the one that best fits our current status based on the choices on SA's list.

    Most of our research/commentary is typically a collective effort among the research team...which is why we often use the term "we" in our articles. There is no "I" in "team"...

    As far as responding to comments, we could certainly do a better job of that. One of the great things about SA is that often times other readers will answer questions that are posted in the comments. It's a true open forum...
    Sep 16, 2011. 03:04 PM | 2 Likes Like |Link to Comment
  • Will Mortgage REIT Investors Be Left Holding The Bag? [View article]
    gbsjamin - thanks for posting this info. You are correct, this may turn out to be a "smoke" but no fire event...but the headline risk will certainly add to the volatility of the stock over the short term.

    That said, any event that could potentially have a significant adverse impact on your investment is worth following very closely (regardless of the probability of the event).
    Sep 16, 2011. 02:51 PM | 1 Like Like |Link to Comment
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