What Did You Buy Today?

[fenders53]

(05-26-2020, 11:08 AM)EricL Wrote:

(05-26-2020, 10:53 AM)fenders53 Wrote: I just "shorted' DE at a bit over $150.  I'll lose money if it runs much past $156 in the next few weeks.  This is a "gut play" but the fundamentals are on my side.  Wish me luck. 

Started a small position in HRL with a 25 share buy.  Also sold a JUN put at $45 and received almost a years worth of dividends in advance.  I'll keep doing that every month until I get more shares.  If the market pulls back I'll get more serious with more than one put sale at a time and get a full position.  HRL is an awesome company with next to no debt, but I have no illusion it is undervalued here.  It's right at my lower limit for dividend yield for a slow growth company, no matter how good the balance sheet is.

I agree that HRL is fully valued, if not overvalued, but its stability and balance sheet make it attractive in the current economy.

If HRL were to drop a couple bucks I'd get serious about a full position.  This may sound crazy but it would be my replacement for a 20yr treasury yield.  My cash reserve account yields are dropping at a literal 5-10% a week pace.  Almost 2% risk free 15 months ago.  Now sub 1/2%.  That doesn't work for anything more than pocket change.  It will kill my overall port income.  "TINA" is real right now.  I'd sure hate to be 75yrs old right now and forced to take risk.  I'm sure many are living this and watching their safe income die with no end in sight.