Also, the premium in CAF is only at 4% right now. If it goes higher when the underlying index returns to an uptrend, it could amplify your gains. Details here: www.cefconnect.com/Det...
Maybe if you "pair trade" JNK against PHK, that would work out, if the market goes lower. You can use the dividends from JNK to pay those from the short PHK. It looks like now is an excellent time to put that trade on - but you have to be pretty quick to pull the "sell" lever!!
I just got off the phone with Andrew Moore from Eaton Vance (1-800-262-1122). As "Gruber" suspected above is the truth. Options Premiums are characterized as "Return of Capital", so they aren't just giving you your money back with the dividends! --joe
As an update to this, now that I look again, Peter's picks are all up - some of them substantially!! Looks like I just needed to have more faith in his longer-term outlook!! --joe
On Jan 31 10:32 AM snoopyjc wrote:
> In the long run, we're all dead. Peter is a great economist, but > a really bad stock picker, unless you are investing for income only > and don't care about your principal. He has a "one size fits all" > plan and doesn't care if you are a growth investor or an income investor. > I only invested in a few of his picks, and most of them went into > the toilet. He picks companies that pay from 8 to 25% dividends. > (If a company is paying 25% dividends, that company is severely broken!) > The only one that didn't tank was his physical gold pick. Even his > most recent picks from Jan 7 are down from 7 to 20% in THREE WEEKS!! > (Fortunately I didn't buy them.)
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--joe
Osisko Mining Can Move Ahead [View article]
--joe
CAF: If Money Flows into Mainland China, It's Where You'll Want to Be [View article]
chart.ly/fhqxy6
Also, the premium in CAF is only at 4% right now. If it goes higher when the underlying index returns to an uptrend, it could amplify your gains. Details here: www.cefconnect.com/Det...
--joe
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--joe
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--joe
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chart.ly/xn9fzm
FYI,
--joe
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Chart: stockcharts.com/h-sc/u...
--joe
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--joe
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--joe
On Jan 31 10:32 AM snoopyjc wrote:
> In the long run, we're all dead. Peter is a great economist, but
> a really bad stock picker, unless you are investing for income only
> and don't care about your principal. He has a "one size fits all"
> plan and doesn't care if you are a growth investor or an income investor.
> I only invested in a few of his picks, and most of them went into
> the toilet. He picks companies that pay from 8 to 25% dividends.
> (If a company is paying 25% dividends, that company is severely broken!)
> The only one that didn't tank was his physical gold pick. Even his
> most recent picks from Jan 7 are down from 7 to 20% in THREE WEEKS!!
> (Fortunately I didn't buy them.)
Arbitrage Opportunity in Ultra ETFs [View article]
--joe
Arbitrage Opportunity in Ultra ETFs [View article]
Have you considered doing this using triple-leveredged funds?
--joe