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Ajay Kalra

Ajay Kalra
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  • Buy-Write CEFs Are An Alternative To An S&P 500 Dividend Fund [View article]
    IndyDoc1,

    >Would you explain how a Leap call will limit loss during market melt-down?
    > would not option call will lose value during market down turn?

    True, that call option will lose value. Your maximum loss when the position goes against you however is limited to price you paid for the call option. This will be less than the loss you would encounter had you bought the underlying security outright. Loss is relatively less.
    Aug 17 10:46 PM | Likes Like |Link to Comment
  • What A Difference A Year Makes For Interest Rate-Sensitive ETFs [View instapost]
    I started lighting up few weeks ago. This has been a tremendous run. Returns of DFP, JRI etc have been good. PDI still continues to chug along and is at a premium(ATH as well). MLP CEFs have started to have widening discounts (NML, NDP, MIE etc), making them more compelling at this point.

    Also worth noting that PFF is now declining in RSI and related CEFs are showing the same trend. May be nothing but seems to show some sort of correction/distribution.
    Jun 21 08:14 AM | Likes Like |Link to Comment
  • Kingdom Of The Worm [View instapost]
    IVH is interesting as discount is good(duration little over 4 years). Take a look at ISD as well(duration is little over 2 years). I noticed it because of insider buying when the same person bought both ISD and GHY.
    Jun 3 10:36 PM | Likes Like |Link to Comment
  • Kingdom Of The Worm [View instapost]
    My largest holdings continue to be JRI, EHI and IGD; all are up nicely. I did get out of JRS couple of months. I had opened that position on last day of the year. Feb dip was really the opportunity so far this year.

    I am now eyeing more JDD today, probably swapping (partly) out of ESD, which I have held since taper tantrum (and added more to it in Feb at 16.36).
    Jun 3 09:21 AM | Likes Like |Link to Comment
  • Kingdom Of The Worm [View instapost]
    We have similar CEF interests. I bought JDD few weeks ago as the discount was good and NAV was increasing. Few hours ago they released June Dividend. Its increased by a penny.

    I bought PGZ few days ago at 18.92 and it jumped the same day. Funds came because I bolted AWF(which decreased dividend significantly).

    Today I bought BWG in non retirement account(income has ST + LT gain as well) by selling NDP, probably a wrong move. I missed MIE before its recent rapid increase. I prefer ROC distribution with increasing NAV and widening discount.
    Jun 2 09:02 PM | Likes Like |Link to Comment
  • Back At The Funny Farm [View instapost]
    Very informative. Keep it up.
    May 25 11:40 PM | Likes Like |Link to Comment
  • Closed End Fund Discounts Tighten - So What Are You Selling? [View article]
    Sold all of DHF few weeks ago. Halved PDI position as well. Probably exit all of PDI very soon. Got into JDD few weeks ago as discount had widened considerably.
    May 24 09:06 PM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    > supposed QQQX continues to be at a premium and JLA at a discount.
    >Wouldn't QQQX holders be surrendering premium in a merger?

    JLA will assume QQQX discount/premium at the time of merger. QQQX will/should not be impacted as more money will find the same holdings but for new shareholders (JLA). Existing QQQX shareholders dont really have much to lose.

    Ajay
    May 5 10:05 PM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    >We still haven't heard anyone offer an opinion as to why QQQX shareholders
    >would vote "yes" for this proposal.

    The only risk for QQQX shareholders is the ability of its managers to not handle another $340million (doubling the size) that will be available at the merger. That assumes there are no common positions between the two funds.

    Ajay
    May 5 10:30 AM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    das555,

    > QQQX provides a tax advantaged yield - last dividend (which was raised)
    > was 81% ROC.

    Good catch. % of ROC to total distribution has been consistently high for QQQX. That might make it better for JLA holders. Regardless, there are opportunities in other families or within Nuveen if one doesnt like QQQX.

    Ajay
    May 5 07:59 AM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    Correction: My earlier comment (10.94% gain) assumed that equal amount of shares were exchanged between JLA and QQQX. Exact numbers are as shown by Left Banker in the article.
    May 2 11:43 AM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    Doug,

    Just curious, is this transaction slam dunk as proposed? What are the risks for it to not go thru?

    Thanks
    Ajay
    May 2 10:20 AM | 1 Like Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    Hi Doug,

    > I was actually short QQQX before yesterday already and I have been buying ALOT of JLA shares this morning.

    Yes, risk free trade is to short QQQX as well. Without it, if QQQX tanks (due to nasdaq going down and/or increase in discount of QQQX), one may still end up losing(or not gaining as much) if one is just long JLA.

    Ajay
    May 2 10:18 AM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    norton35,

    As per the news release from Nuveen, its a non taxable event for current JLA owners.
    May 2 07:59 AM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    Discussed here: http://seekingalpha.co...

    Math is simple: Discount of JLA will become discount/premium of QQQX if the merger takes place. Risk free strategy is to short QQQX and go long JLA for same $ amount. Net gain as of closing yesterday: 7.76 + 3.18 = 10.94%.
    May 2 07:58 AM | 1 Like Like |Link to Comment
COMMENTS STATS
134 Comments
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