HI Bull,
Sorry I was not pesuasive, but as you know I entered XOM way too soon (as it dropped below70.00).
Admittedly, much of that opportunity I was was hunkered down under my desk. <smile>
That being said the purchase was made with funds that were yielding next to nothing. My buys gave me 5.5% dividend yield (which I was satisfied with) and have graciously been receiving for over a year now.
I did sell far out in time puts on both CVX for 90.00 and XOM for 35.00,37.50, 50.00, 55.00. To date all are in the green except the XOM's 55's (65 cents in the money as I type) If a assigned, I'll own XOM at 48. and change - a 7% dividend yield. I'm OK with that too.
Fortunately I was able to swap out some Cohu for XOM, which added nicely to my dividend revenue stream for 2021.
Crude has done better and faster than dreamed of for me.
The years of slashed capex reinvestment is now catching up with the price of crude.
The estimated well depletion rates are 7% per GS.
Recovering demand coupled with depletion rates and vastly reduced Capex will be longer term price supportive events I suspect.
As renewable energy and EV's over exaggerated growth rates become clearer, these oil supers will be the the large scale low cost producers of the swing barrels of oil that determines the global price.
Suddenly all the doom and gloom cast upon the two US majors (XOM and CVX), is now retracted and low and behold they can meet their dividend (albeit not increasing as fast as in the past). But heck, if you bought when it was low, it was yielding 8 to 10%. At that rate it's a double your money in 7-9 years. I'm OK with that too!
Hoping for a retrace as I'll only add more at that event.
Very glad I have what I have though.
Wishing I had more as my puts decay in price.
In time decay I trust! The slower, fear free way to create wealth. IMO
Bob |
