WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR MeWe PAGE!


Posted by Martin April 10, 2013
No Comments



 




Trade Adjustment – Corning Inc (GLW) put selling addition

Trade Adjustment - Corning Inc (GLW) put selling addition

Corning Inc seems to be performing well. The outlook Morningstar presents hasn’t changed and they still estimate the value at $15 a share. My own calculation indicates 17 a share with 28% safety margin and annual expected return at 25%.

The PEG value of 0.9708 is below the Electronic Equipment, Instruments & Components industry median PEG of 1.93 and P/E of 11.6492 is also below the industry median of 17.41. With that the company seems to be slightly undervalued and for me it is still in a buy zone.

The stock pays dividend at $0.36 annual rate, which at today’s price level provides 2.70% yield. The 3 yr dividend growth is at 16.96%, the 5 yr dividend growth rate is at 18.07%. The company pays the dividend since 1990 and increased the dividend for 2 consecutive years.

Since the stock is in my buy zone and it is a company I am OK to own, I decided to sell 1 put contract on this stock:

04/10/2013 09:30:42 Sold 1 GLW Nov 16 2013 13.0 Put @ 1.00

I’ll keep you posted if I get assigned or keep the premium and repeat the process.




TastyWorks

We all want to hear your opinion on the article above:
No Comments



Be A Banker To Yourself – My Way Of Infinite Banking Account

Be A Banker To Yourself - My Way Of Infinite Banking Account

Once I wrote about an Infinite Banking strategy in my “Be a banker to yourself” article. It was a brief review of this strategy. Today I would like to show you how I use this strategy but without a whole life policy behind the “Infinite Banking”.

What Is Infinite Banking?

If you do not want to read my previous post about Infinite banking, let me provide you with a quick review what is this strategy about.

The main point is to open a whole life insurance policy which will allow you to take a loan from the policy. Then you build the account in about a 5 year-long accumulation phase. You pay your insurance premium and on top of the premium you pay a contribution to the investment part of the policy.

After 5 years you should be allowed to take a loan from your policy and you pay the loan back with an interest. The smart and cool part of this strategy, which I like the best, is that you pay the interest to yourself.
Read More




TastyWorks

We all want to hear your opinion on the article above:
12 Comments



Posted by Martin April 07, 2013
4 Comments



 




My inspiration in the last week #16

My inspiration in the last week #16

This week I would like to present the following interesting web sites and links.

I often browse the internet to find ideas about investing, trading stocks, options, investing opportunities and strategies. I like to read about investors and what their investing/trading approach to create income you can live on is.

 

This last week I really had a good time reading articles on many blogs. Many inspirational posts with a lot of wisdom in it. I also had a good laugh as some bloggers used funny language describing their point of view on money. Some say, writing about money, personal finance and investing is dry and boring. Some of you however made my day reading your posts.

Thank you




TastyWorks

We all want to hear your opinion on the article above:
4 Comments



Posted by Martin April 02, 2013
16 Comments



 




My Investments 1Q 2013 results

My Investments 1Q 2013 results

This 1st Q 2013 statement is my first publicly presented results and it will be a bit longer than the reports I will be posting in the next quarters. When I was thinking about how I wanted to share with you my results I was considering providing monthly reviews. Later, I decided to use quarterly reports as usually published by businesses.

It was always my dream to invest and trade stocks as a business and this quarterly evaluation may be a step toward this goal. I will be publishing my results on quarterly basis and try to keep it as close to the companies results as possible while keeping simple and readable.

Read More




TastyWorks

We all want to hear your opinion on the article above:
16 Comments



Posted by Martin March 31, 2013
8 Comments



 




My inspiration in last week #15

My inspiration in last week #15

After a week or two of being out of blogging I am back on my regular schedule. This week I would like to present the following interesting web sites and links.

I often browse the internet to find ideas about investing, trading stocks, options, investing opportunities and strategies. I like to read about investors and what their investing/trading approach to create income you can live on is.

 

This week I found the following interesting posts:

 
Do you have an interesting article or post on your blog which you would like to post on this blog? Send me your idea or article or just a link for repost.

 




TastyWorks

We all want to hear your opinion on the article above:
8 Comments



Posted by Martin March 30, 2013
10 Comments



 




My Yakezie Progress


Proud Member of YakezieFirst quarter is behind us and for me it is time to start working on my performance review for the first quarter. At the beginning of the month I joined Yakezie Network challenge. I would like to post my monthly Yakezie progress:

When I joined the challenge on March 1, 2013 my Alexa rank was 1,798,936

 

 

Here are the values as time went by:

March 8, 2013 1,560,612
March 15, 2013 1,284,616
March 31, 2013 589,548

To me this is an excellent progress. When I was thinking about joining the challenge and I saw my original score I was thinking that it would be impossible to reach 200,000 Alexa rank or less within six months.

I am very impressed that I could lower my rank by more than 1 million points.

But I couldn’t do it without you, my readers. I appreciate your time you spend on this web site and leave a comment. I will work on providing a better content and advice based on my own experience in trading stocks and options.

Thank you all!
 




TastyWorks

We all want to hear your opinion on the article above:
10 Comments



Posted by Martin March 29, 2013
No Comments



 




Exploring your Investing Options with a Variable Life Insurance Policy

Exploring your Investing Options with a Variable Life Insurance Policy

This is a guest post from Ori Tal. Ori writes for the financial blog LifeInsuranceQuotes.net which is a blog that explores personal finances.


Many adults have two primary financial needs: provide protection for their family with life insurance and investing beyond what they are able to contribute to their plans. Thanks to its income tax advantages, variable life insurance policies have become the investment of choice for many savvy adult investors.

Read More




TastyWorks

We all want to hear your opinion on the article above:
No Comments



Posted by Martin March 28, 2013
8 Comments



 




A Curious History of a Sucker

A Curious History of a Sucker

Once a friend of mine asked me why I named my website “Hello Suckers”. I told her it was because the web site was about investing and that all my investing career was one big disaster at that time. I invested like a sucker and I was losing money.

Jesse Livermore called these people “suckers”. I knew investing and trading wasn’t easy, but I thought I had found the holy grail of trading and wanted to share with other fellow suckers. Thus I welcomed them on my website and I wanted to show them how trading needs to be done to get rich quick with a very little account and very little effort.

Read More




TastyWorks

We all want to hear your opinion on the article above:
8 Comments



Posted by Martin March 25, 2013
3 Comments



 




A short break


I appreciate all my readers, please come to my web site and drop a few words, even if you think you cannot find anything valuable on this web site, I would like to hear about it and improve my posts.

Last two weeks I was extremely busy at work and this coming week will not be any better, so I skipped some of the scheduled posts and will be posting again later this week or next week.

Thanks you!




TastyWorks

We all want to hear your opinion on the article above:
3 Comments



Posted by Martin March 20, 2013
5 Comments



 




New Trade – Micron Technology Inc (MU) covered call

New Trade - Micron Technology Inc (MU) covered call

The Micron Technology Inc covered call order executed this morning. This is another trade utilizing a total return strategy. That means that I want the stock to be called away at expiration or even better be assigned prematurely. If assigned, either early or at expiration, I will realize a nice gain. If not assigned, i can keep the stock and continue selling covered calls as long as the stock gets called away.

I use total return strategy on stocks I do not intent to hold as a core investment in my portfolio. When I was thinking about using covered call strategy against the existing dividend paying stocks I immediately knew that I was afraid to lose my holdings being forced sell them if the stock ends above the strike price at expiration.

Do you want to lose your holdings which pay you a nice dividend? You are building up your ever-increasing money machine, cultivate your holdings, keep up your allocation and enjoy increasing payout anytime you add more shares to your holdings. And all of a sudden you get called away because you sold a covered call contract against the holdings in your portfolio. I didn’t like this potential outcome.

It is recommended using put selling against stocks you do not mind owning at expiration and somewhat discounted price (unless the stock falls away too deep). So why should I use calls to be called away if I do not want such result? The same recommendation goes for covered calls that you should use it on stocks you want to sell.

And that makes for investors two trade styles available: a partial return and a total return trade. A partial return trade is about avoiding your stock being called away. Sometimes to do so, you need to apply all sorts of trade repair strategies such as rolling the strike price out, away and so on.

To have a peace of mind I use buy-write strategy selecting stocks I am OK to own for a short period. But more importantly, I buy stocks just for the purpose of being called away. That’s how I generate an extra income.

STOCK DETAIL

One of the stocks I reviewed last night and I liked the outcome was Micron Technology Inc. Micron Technology, Inc., is a global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products. In addition, the Company manufactures semiconductor components for CMOS images sensors and other semiconductor products. The Company operates in four segments: NAND Solutions Group (NSG), DRAM Solutions Group (DSG), Wireless Solutions Group (WSG) and Embedded Solutions Group (ESG). The Company’s product include NAND Flash Memory, Dynamic Random Access Memory (DRAM) and NOR Flash Memory. The Company’s manufacturing facilities are located in the United States, China, Israel, Italy, Malaysia, Puerto Rico and Singapore.

From the technical analysis perspective the stock is approaching 3-year high and most likely reach the 10 dollar level and possibly breaks thru. It already broke thru $9 resistance and I would expect the stock staying above this level.

The company acquired Numonyx and Elpida which provides Micron with better diversification and access to phase change memory market, which can be a significant technology in the future.

The stock is however considered a cyclical stock and may experience cyclical volatility. This is why I decided to take longer dated trade to give the stock time to grow.

Most of the analysts are bullish on the stock.

TRADE DETAIL

03/20/2013 10:07:54 Bought 100 MU @ 9.21
03/20/2013 10:07:54 Sold 1 MU Jul 20 2013 10.0 Call @ 0.63

 

Own 100 shares MU: $9.21
Strike: $10.00
Sold 1 Covered Call: $0.63
Total Purchase: $63.00
Commissions: $8.78
Total purchase: $866.78
Expected Option Assignment: $1000.00
Option Assignment Fee: $19.00
Expected Proceeds: $981.00
Expected Net Gain: $114.22
Expected ROI: 13.18%

How do you trade covered calls? Do you trade them at all? If you trade covered calls, do you trade them against stocks you already own or do you trade buy-write, total return trades?

 




TastyWorks

We all want to hear your opinion on the article above:
5 Comments





This site has been fine-tuned by 14 WordPress Tweaks