| | | Hi sm1th,
I'm now 1/3 in treasuries in my trading account. the other 2/3 are equities and I have also "bot to close" and/or allowed all of my 2023 puts to expire. I have some January 2024 KMI 13's and a few 15's puts which will yield excellent prices if they get assigned 8% + yields.
I also have some January 2024 puts 13,14 and 15 T's all excellent yielders, if assigned.
I'm hopeful of "buying to close" them in December. I hate to accelerate the profit into this year, but it will depend on a juicy rate for 12 to 24 months being available in a Treasury.
If I can extend them in duration such that a drop in rates would create a capital gain in selling the Bond, that would be the ideal scenario. Guaranteed money back and at a capital gains tax rate. I suspect that won'tu
That would take my cash to near zero and then I'll pool my dividends and add to Treasurys.
5.5% taxed as a capital gain is better than what my account currently gets at the elevated levels of my oil stocks. Based on cost they are yielding about 6.1 % with a threat of value loss.
I'll not sell anything but build the account with less risk is appropriate if one can do it IMO.
I'm not getting any younger and have a lot to complete in my next few good productive years ie finish the restoration of my old Chevyas.
They are time consuming and money pits. LOL
I've been buying Treasuries 10 to 16 months out if they yield to maturity above 5.5 %.
I'll go 24 months if I can lock in 5.5%, 36 months @ 5.75, and a smaller amount if 60 months can yield 6%.
I can't imagine going longer. If the market does collapse, I'll want to be able to do some bargain picking and lock in some 6% plus dividend yields long term.
Many are wondering why the economy is so resilient. If I'm an example, the interest rate fast increase has for the first time in my life given additional income to a much greater degree than in the past.
I'm enjoying watching my interest earned on a daily basis by watching my unearned cost basis go up every day. Something new and different and fun to watch it build. More fun than watching time decay go to work - no swings!
I'll still be here to watch and be opportunistic on obvious put premium inflation times, just fewer marbles on the table.
Keep posting your great trades buddy!
Bob |
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