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I suspect few, if any, participants here have held Apple longer than I. First bought in 1989 and doubled down several times. Sold everything in 2012 to grab the lowest tax rates of my lifetime. Then got back in (only with a portion of the proceeds) in 2013. Well, today I sold calls against my shares, for a number of reasons. I sold Jan 2018 165 calls against all my shares. Why?:
- Could use some cash for non-investment reasons
- If they are called away, there is at least some chance of a lower tax rate next year
- AAPL has risen something like 16 out of 20 days. It can't go on forever.
- Selling at 165 + premium is way more than 100% appreciation since my 2013 repurchase. That's enough for me--and besides, AAPL keeps getting to be a larger and larger position in my portfolio. Don't ask, I am too embarrassed.
- I sold covered calls to significantly help support my family after the iWife lost her job in 2002/03 until she and I retired in the past 2-3 years, so I am comfortable doing it. However, AAPL was much more volatile last decade, so the return to selling options was quite a bit greater.
Despite the move, this should not be seen as a bearish orientation on my part. More a move to diversify away from technology a bit in my dividend retirement portfolio. My preferred holding time is the same as Warren Buffett's--forever. Maybe that's why I am posting this. It is not my usual MO.
P.S. A few weeks back, I asked the board for opinions on what would be the best strike price "just above" the stock price next January. Unfortunately, I got no replies. :-(( After today, I might think 170 would be optimal for me, instead of 165, but who knows.
Hope this might help anyone in their thinking about AAPL. |
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