(12-29-2020, 03:26 PM)fenders53 Wrote: I am in old man boring mode for sure.    Puts are expiring so I sold new ones n CVS, WBA, VST, PFE.  Working on T and MO as well.  Not much in my buy range.

Thinking about selling the JAN SIX puts.  Just might salvage enough for a bucket of KFC.    Thankfully I'm not short anything else.

(12-29-2020, 05:33 PM)NilesMike Wrote: What PUTS are you guys selling in T?

(12-28-2020, 06:26 PM)fenders53 Wrote:

(12-28-2020, 10:57 AM)pdaignau Wrote: What are people planning on buying with their 2021 IRA contributions?  I'm still undecided.

• In my Roth I've been experimenting with higher yield (PCI, T, etc.).  I'm thinking about something like QYLD.
  
• In my wife's Roth, I usually buy the best value/quality DGI stock I can.  Nothing is jumping out at me, might buy into a DGI ETF (for now).
  

Unrelated... Bought a few more shares of BABA.  I've been working on a small position on the recent drops.  I know it's not DGI, but I've seen people here talking about it.

Paul

I own some T and used to own a lot more at times.  FWIW it's an income stock period.   It's a fake Aristocrat/DGI after so many years of miniscule raises and high debt and in my opinion you have to do some combination of the following to make it worth the risk.

-never buy many, if any, shares when it is up above 30.  You don't have to buy them all rock bottom but you better be adding when it is probing sub 27.  

-enter by selling a put when it get's near the bottom of what you believe is the trading range.  They will mostly expire worthless, so rinse and repeated until you get some shares assigned.  Sell some calls, at least quarterly.  The option income added to dividend income piles up.

-don't be afraid to trim some shares if you get lucky and the SP runs a few months after you bought low. 

-it's pretty easy to collect 15% a year in a stock I consider a complete dog for the foreseeable future.  If they get their act together and it runs past $40, oh well.            

I'd go easy on high yield anything until we get a pullback.  Most of the ones I follow always get smoked in a market downturn.  When the credit markets get scared they suffer.

(12-30-2020, 06:41 PM)pdaignau Wrote: How do you track money generated from selling CSPs?  Dividends / DRIPs lower the cost basis of stock I keep, but CSPs aren't necessarily tied to a holding.  I guess you treat it like new cash?



I treat all income from shares or options as a  "new money ". Everything goes to the cash bucket. I don't do drip and dividends will not affect cost basis of shares in my books. 

(12-30-2020, 06:41 PM)pdaignau Wrote:

(12-28-2020, 06:26 PM)fenders53 Wrote:

(12-28-2020, 10:57 AM)pdaignau Wrote: What are people planning on buying with their 2021 IRA contributions?  I'm still undecided.

• In my Roth I've been experimenting with higher yield (PCI, T, etc.).  I'm thinking about something like QYLD.
  
• In my wife's Roth, I usually buy the best value/quality DGI stock I can.  Nothing is jumping out at me, might buy into a DGI ETF (for now).
  

Unrelated... Bought a few more shares of BABA.  I've been working on a small position on the recent drops.  I know it's not DGI, but I've seen people here talking about it.

Paul

I own some T and used to own a lot more at times.  FWIW it's an income stock period.   It's a fake Aristocrat/DGI after so many years of miniscule raises and high debt and in my opinion you have to do some combination of the following to make it worth the risk.

-never buy many, if any, shares when it is up above 30.  You don't have to buy them all rock bottom but you better be adding when it is probing sub 27.  

-enter by selling a put when it get's near the bottom of what you believe is the trading range.  They will mostly expire worthless, so rinse and repeated until you get some shares assigned.  Sell some calls, at least quarterly.  The option income added to dividend income piles up.

-don't be afraid to trim some shares if you get lucky and the SP runs a few months after you bought low. 

-it's pretty easy to collect 15% a year in a stock I consider a complete dog for the foreseeable future.  If they get their act together and it runs past $40, oh well.            

I'd go easy on high yield anything until we get a pullback.  Most of the ones I follow always get smoked in a market downturn.  When the credit markets get scared they suffer.

Thanks for the feedback.  My "Dividend" / "Fun" portfolio is just starting to get to the point where basic option play is feasible.  I took this and your followup post on the strike prices as indicators its time to start playing around with options more.  I followed suit.  I sold a couple of Cash Secured Puts (Cash Secure Puts) on AT&T.

How do you track money generated from selling CSPs?  Dividends / DRIPs lower the cost basis of stock I keep, but CSPs aren't necessarily tied to a holding.  I guess you treat it like new cash?

Thank you,
Paul