EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.
Weekly Activity
$100 deposit into Investing
$1.63 dividend from JNK
$1.11 dividend from O
Model Portfolio Totals
Trading Account: $1,625.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $16.25
Portfolio stop (3% account): $48.75
Investing Account: $3,783.01
Estimated Monthly Income: $10.79 ($0.351 from DRIP)
Stock
ABT: $0.76 ($0.006 from DRIP)
AFL: $0.63 ($0.005 from DRIP)
STX: $0.84
WMT: $0.59 ($0.011 from DRIP)
Energy
COP: $0.78 ($0.016 from DRIP)
ERF: $0.90 ($0.059 from DRIP)
PSX: $0.12
REITs
O: $1.11 ($0.049 from DRIP)
BDCs
TCAP: $2.19 ($0.049 from DRIP)
Bonds
JNK: $1.71 ($0.112 from DRIP)
PCY: $1.16 ($0.050 from DRIP)
Maneuvering Cash: $1,100.82
Savings Account: $1,875.20
Emergency Fund: $1,000
General/Car Fund: $525.20
Portfolio Protection
Trading Account: $100
Investing Account: $250
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
Would you consider a sub account for trading? You mentioned before stock options. If you have a sub account say 1000 dollars you could make money buying call options or put options.
ReplyDeleteWhen I have 100 shares of 1 company I would consider covered call writing. Apart from that just straight up stock option trading? I tried it and really dislike it because some lame analyst will open his big fat mouth about what he thinks the company is worth and the price moves 5% in a day.
DeleteCovered call writing is just a poor strategy. It doesn't matter if you want to hold a stock for dividends or for capital gains, writing covered calls will force you out (or force you to make a lot of potentially poor decisions) of an investment just when things start to go your way.
ReplyDeleteCovered Call writing is a perfect sorting machine. You get to keep any stock that under-performs and the ones that would have given you great gains are taken away from you.
Something to consider.
Personally, I'm not a fan of covered call writing either. I think a portfolio with more dividend aristocrats would be a better in the long run.
ReplyDeleteThe covered call writing strategy is something near the bottom of my list of things to consider. First thing to do is get 100 shares of the same stock LOL.
ReplyDeleteEverytime someone tells me how great it is to get paid extra on top of the dividend to own a stock that goes down I ask them what about the ones that goes up and you lose the stock, and the next dividend, and you have to pay more to buy it back.
*cricket chirps*. Yeah thats what I thought.
You've got it exactly correct. There are simple ways of getting some income using options without the main problem that plagues the Covered Call writer, but there too you'll still usually have as a scenario that you may be forced to sell your shares. The difference being that you'll net out a lot more than the typical 2% premium that a covered call strategy alone will bring you.
ReplyDelete