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bionic1

bionic1
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  • AT&T: A Conservative Strategy Could Earn 20.9% [View article]
    Actually it's just a loss of profit & probably the div,if exercised prior to x-date,since the premium was $1.90 & the stock price loss was $1.09 leaving a gain of $0.81(far from the premium collected).. 1.The problem is assuming that it won't be exercised because the $32strike plus the $1.90premium results in a breakeven amt. of $33.90..However, when you subtract the div of $.47 that price now becomes $33.43.. 2.Options are assigned randomly so someone may have paid a lot smaller premium(when share price was near $32) making it profitable at a lower price & as a seller you have no real control over when/if you are assigned.You could try to buy to close or rollout & up but there is no guarantee that the assignment won't occur first..
    Jan 10, 2015. 10:02 AM | 1 Like Like |Link to Comment
  • AT&T: A Conservative Strategy Could Earn 20.9% [View article]
    The downside on a put is the strike price x 100 x # of contracts sold - premium received(actual share price is irrelevant) ie. $30strike x 100=$3000 x 5contracts= $15,000 - whatever the premium was(if $1) x 500=$14,500 excluding trading costs...Didn't know selling "naked calls" was allowed...thought they had to be covered by stock or a higher strike call(like in a vertical spread) to define max loss!!
    Jan 9, 2015. 08:21 PM | Likes Like |Link to Comment
  • AT&T: A Conservative Strategy Could Earn 20.9% [View article]
    Wouldn't it make more sense to write an ATM or OTM CC...If the stock price stays flat or rises you have a built in $1.09 loss if you bought at $33.09 with a $32 call strike...ITM calls are usually "bought" not sold & are used as a stock substitute..Also, if opening the position a buy/write should be used to reduce commission costs(option contract costs still apply)
    Jan 9, 2015. 07:43 PM | Likes Like |Link to Comment
  • Generating $100 A Month From AT&T [View article]
    And your comment means what??? You do realize that you need the cash to "cover" if they're exercised at any time they go ITM before & up to expiration!!
    Jan 9, 2015. 07:01 PM | 2 Likes Like |Link to Comment
  • Generating $100 A Month From AT&T [View article]
    That's .22/month=.66/qt ......still a big cut but over a 4yr period so there were many time choices to bail!! Still over 10%
    Jan 9, 2015. 06:41 PM | Likes Like |Link to Comment
  • Retirement Strategy: A Dividend Aristocrat REIT That Is Right For Retirement Portfolios [View article]
    2)If they cut their divs in past 5yrs they are no longer aristocrats!!
    Jan 5, 2015. 03:12 PM | 2 Likes Like |Link to Comment
  • Is Linn Energy's Distribution Cut The Result Of Bad Deals In 2014? [View article]
    Hindsight makes everyone a genius...Nary an article like this one before the collapse in oil prices!!
    Jan 4, 2015. 09:18 AM | 7 Likes Like |Link to Comment
  • Annaly: I Am Seeing More Reasons Not To Own This Stock Right Now [View article]
    In all the articles on NLY you have to go half way through the comment stream on this one to find the true reason for NLYs performance(or lack thereof), MIKE FARRELL is still dead!! Everyone uses all sorts of analysis but omits the fact that since his passing the current management is sadly lacking/under performing..At best,NLY is now a short term trading vehicle,not an investment, & has been for the past few years !! Over the past 4yrs TWO & AGNC were much better choices(in that order) as a buy & hold type investment in this sector..
    Jan 4, 2015. 09:05 AM | Likes Like |Link to Comment
  • Annaly: I Am Seeing More Reasons Not To Own This Stock Right Now [View article]
    What price did you buy stock at??What is the call & put premium (didn't see a $10put on Yahoo for 7/17/15) Agree with RS,doesn't make much sense as the put premium to be paid is larger than call premium received!! If you had a nice profit at $11, wanted to protect it, & hope it stayed range bound if the call was say .50 & put was .25 @ a $11 strike for both,then your upside is capped at $11.25($11+diff between premiums) & downside limited @ $11(put bought with part of call premium)...This is called a "collar" & is usually used to protect from a black swan event (expecting a possible poor earnings report,lower guidance,etc) but it mostly very near term based on a specific date/event--which in the case of a Fed rate increase is unknown..
    Jan 3, 2015. 12:29 PM | 1 Like Like |Link to Comment
  • Verizon: Deeply Undervalued With A Near 5% Yield [View article]
    Then instead of still being ambiguous why don't you correct me by posting the correct numbers!! Didn't double count divs but since you mentioned 2013/2014 I doubled 2014 instead of looking up 2013(which was $2.06/.515 qtr) so total for 2yrs of divs s/b $4.26 1/16/13 low was$41.50..So $46.78+$4.26=$51.04-$4... So I was off by a tad more than2% over 2 yrs..BFD At least I post numbers not BS unsupported opinion!!
    Jan 1, 2015. 04:29 PM | 2 Likes Like |Link to Comment
  • Verizon: Deeply Undervalued With A Near 5% Yield [View article]
    You only lose IF you sell!!
    Jan 1, 2015. 12:56 PM | 2 Likes Like |Link to Comment
  • Verizon: Deeply Undervalued With A Near 5% Yield [View article]
    At start of 2013 VZ was selling for around $40,now $46.78 +$4.40 div over the 2yrs=$50.78 ...That's 25+% over that time from a regulated utility...& you have a problem with that??? If you sold in the low 50s that return would be near 40% (depending on price & how many divs you gave up)..As a retiree I'm laughing all the way to the bank with those div. checks :):):)
    Jan 1, 2015. 12:14 PM | 1 Like Like |Link to Comment
  • Verizon: Deeply Undervalued With A Near 5% Yield [View article]
    Agree with fatter yield..At current DGRs it would take VZ about 10yrs to =T in yield % ...T= better current income while VZ "may"= better long term TR
    Jan 1, 2015. 11:54 AM | Likes Like |Link to Comment
  • Verizon: Deeply Undervalued With A Near 5% Yield [View article]
    What dip??When & at what price??? Ambiguous statements sound more like sour grapes caused by poor analysis!!
    Jan 1, 2015. 11:48 AM | Likes Like |Link to Comment
  • Retirement: Income Only Or Total Return? [View article]
    Unless you drop dead at 69yrs & 364days....Then you get ZERO!!! Spend down your retirement funds to get a larger SS & die with a smaller estate & leave your SS to the government..NOT!!! Current break even is 78.5 for 62vs.66 & 83 for 62vs70...This doesn't even count the compounding on your un-spent retirement money..Stop drinking the government koolaid..I'm 73 & started collecting at 62...Mom died @53dad@87 avg=70 so I feel I've already beat the system :):)
    Jan 1, 2015. 11:26 AM | 8 Likes Like |Link to Comment
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