Hi Kirk,
Bottom spotter has been active (marginally) for 4 days.
10 and 30 day clx are supportive into end of this week (option expiration).
Then the next two weeks CLX is a head wind.
Looks to me like we are ending at a upward anti-trend B wave with a C Wave due to come in the next 2 weeks.
I'm running my sold puts out into expiration, but not selling more naked puts collateralized by cash.
I now have put about 60 % of cash into a 50/50 allocation into bank CD's and Treasuries. All of which are yield to maturity just a bit over 5.5 %.
In selling puts, I always targeted lower strike prices and if they expired , they would yield about 5% to 7 %.
If a stock takes a dive or cuts its dividend , there is potenial for an underwater price upon assingment .
Since the rate is the same and the taxation is also the same rate, I'm moving cash into fixed income and staggering the redemption dates about 4 to 5 months apart.
If I see a big drop in a stock I like, the redemption date is never too far away where either my dividends stream will cover the buy or I'll pay margin for a few months or weeks and buy on margin.
My current thought is , it leaves me less exposed to loss and very close to the same yield/income.
It also does not seem to keep me glued to the computer. as much.
Since I'm in remodel mode in Wisconsin and some contractors will be consuming my time, its a good fit for me now.
I have some September, October, and January puts I'm letting run out, and then I'm parking my cash in Fixed income.
Dividends and interest income will be reapplied to stocks on an opportune decline.
Savers are once again being paid - never thought I'd see this day again.
Rates higher for longer are a good thing in a balanced portfolio. IMO
Thanks again for that transcript on Coherent.
Bob |
