03-16-2014, 09:19 AM
Yup, all in the IRA.
I'm totally comfortable with the INTC trade. I'll use that to do some more re-balancing if it's assigned.
The logic of the ABBV is, if it's called, I can buy it right back with a small dip and I'll still be where I'm at. If it takes off, I'll again be wishing I had it back but will find something else in the meantime. It's not like the DGR since the split has been on a rocket. The capital gains don't mean anything since, being in an IRA, it will eventually be taxed as regular income when withdrawn someday.
The MAT trade was the easiest. My biggest worry is I get assigned and it drops quite a bit. It's not a long-term hold for me but I'll be patient collecting the 4% yield until I can at least break even either selling calls or selling outright.
The IRA is in TDA and their option commissions are higher than some places so I try to limit the commission to less than 30% of the premium. During the Great Recession, I was regularly making $200-$400 on cash secured put premiums so today I'm not so enthralled with the premiums being offered.
I'm totally comfortable with the INTC trade. I'll use that to do some more re-balancing if it's assigned.
The logic of the ABBV is, if it's called, I can buy it right back with a small dip and I'll still be where I'm at. If it takes off, I'll again be wishing I had it back but will find something else in the meantime. It's not like the DGR since the split has been on a rocket. The capital gains don't mean anything since, being in an IRA, it will eventually be taxed as regular income when withdrawn someday.
The MAT trade was the easiest. My biggest worry is I get assigned and it drops quite a bit. It's not a long-term hold for me but I'll be patient collecting the 4% yield until I can at least break even either selling calls or selling outright.
The IRA is in TDA and their option commissions are higher than some places so I try to limit the commission to less than 30% of the premium. During the Great Recession, I was regularly making $200-$400 on cash secured put premiums so today I'm not so enthralled with the premiums being offered.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan