What Did You Buy Today?

[fenders53]

(03-26-2021, 01:16 PM)Otter Wrote:

(03-26-2021, 11:35 AM)fenders53 Wrote:

(03-26-2021, 10:17 AM)Otter Wrote:

(03-26-2021, 09:58 AM)divmenow Wrote:

(03-26-2021, 09:52 AM)I Yo Otter Wrote: Also, kudos to whomever bought the 4/1 $56 strike CAH covered calls I sold a few weeks back. Naturally the stock that has been flat/sideways for the past year decides to go straight up right after I sell some calls.

Need to figure out what to replace CAH with . . .

The stocks that have been consolidating and have done nothing are the ones going up now. Even T is moving now   Maybe the drug stocks are next to run.

The premiums on T were so low, it wasn't even worth selling covered calls. Adding to my T position substantially under $30 worked out quite well (for now). Looking forward to that next dividend.   

I just know if I sell calls on my BMY, MRK, PFE, etc., that they will run 10% in the next week. So, have just been sitting on them. CAH has never been one of my favorite DGI stocks (low margins and small annual dividend increases for much of the past decade), so I'm not too bummed by finding something else to replace it with.

I hate it when that happens.  I try hard to just sell them one at a time to see if I trigger a rally lol.  I have been selling calls on PFE and MRK but I am being careful and keep some shares uncovered.  Maybe I would consider BMY soon but not quite yet.

I've found that the easiest covered calls to sell are on a newly acquired position, where I don't have any sort of attachment to the holding (I shouldn't have any, but such is life). Instant gain with the premium, no major regrets if it gets called away in a few weeks, and if it stays flat or drops, I think about that premium again and feel positive.

I absolutely agree.  If it's an intended income play you take the money and run in a month.  It's a punch in the gut when you hold something a year or more, get impatient then accept a 6% or whatever gain when it would have been 26% for holding it just another month or two.  

I have been losing at least part of my positions in one name per month the past 3 months.  MO-WY-IP-MET and that Starlight Starbright REIT thingie I bought with you lol.  (thanks BTW)  I waited long enough on most of them and staggered call sells so it was a good gain and at least I didn't dump all the shares way cheap.  I can live with it.  Not doing it means I ride cyclicals back down so it works out over the years.

I consider both of us rational investors but the emotions reminds me it has some influence.  I am not a robot, and I will always critique myself.  I tell myself I need a few stupid trades now and then to keep the rest at a higher level.   

On a side note the worst feeling I get is when a dividend gets sniped because I am trapped in a call with no additional extrinsic value for a roll forward.  Just gotta eat those, and the stocks keeps flying while you are accepting you have to just give up and free the capital.