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Life Is Not A TV Dinner

Today's horoscope:

"Your charm and cleverness are operating so efficiently today that you could talk your way into getting nearly anything you want (but not a winning lottery ticket or smacking the bottom of the cashier at Publix). However, tread carefully because there's more going on than meets the eye and your words have the potential to unleash deeper issues (Huh? I'm usually pleasant unless you meet me in person.). Happy days may be here again, but don't get so captivated by the possible sensual delights (beer and sex) that you forget about the more mundane things (vacuuming/brushing dogs) that require your immediate attention. Use your powers of persuasion for the greater good (what has the greater good done for me?)."

Sounds good - let's go!

For the Roth, I set a limit order last night once my contribution cleared and picked up some shares of OFG-A. This one and its cousin preferreds got extra-hammered after the good governor's speech over the weekend. I've been waiting for a while to pick it or the B shares up again but was holding out for a 8% market yield. I got a 9.5% market yield (tax free forever) on a price of 18.65/share.

This is a well run bank in a terrible environment. It currently has a positive pe ratio and pays a dividend on the common. As long as those stats last, preferred shareholders are pretty much guaranteed to get paid their dividends. And monthly pay is always nice.

Best possible outcome: Shares are called next week at par for around a 25% capital gain (I wish)

Probable outcome: Collect the dividends for a while whilst hoping inflation stays lowish and the Puerto Rico panic subsides and the shares sloooowly recover in price until I can sell them for around $22 - 23.

Worst possible outcome: OFG goes bankrupt next week after being nationalized and is dicovered to have lied in their accounting practices for a long time and I lose all the money I used to buy into it without even receiving a dividend.

The taxable: Bought another chunk of DVYL. Would have been better to do it in the Roth since the distributions are not tax advantaged, but contribution limits and such and this just really raises the position to 50% of what I'm comfortable with in it. Kind of like a dgi fund, except 2x leverage and has other risks by being a bank note.

I put in a limit order to buy SVXY @ $50. It currently runs around $80. Based on a small amount of money irl last year and an online game experiment I'm part of, this may turn out to a kind of hedge. Except I think of it more as a rebound - off - the - bottom - hedge.

If that limit order hits to buy it, then everything else I own has gone to crap and I'm despairing. The good news is that svxy is so volitile that it can rise in price very quickly (though slower than it goes down). Anywho, svxy acts kind of like a 3x leverage short of the vix. I had sweet and sour results with it last year - I don't think I have the temperament to have a large amount of money in it, but when buy low sell high works it really works.

Additional disclosure: For the love of Mike, don't read this at your own risk.