04-20-2014, 09:08 AM
Well, the waiting has ended as all the options have expired today.
INTC got assigned at $25.00. After commissions, the proceeds were $2538. Not as much as INTC is worth today due to it's recent run up but a 27% gain over my purchase price. In the meantime, I collected a bunch of extra shares reinvesting those dividends. My position is now at the size I wanted it in the portfolio and will keep reinvesting. I still think Intel is a long term hold. The dividend is adequate at a current rate of 3.3%, the company is changing structurally and focusing on the weaker areas, the new CEO has had some interesting comments on where he wants to go and they still have plenty of cash with which to execute and maintain the dividend.
With a few days of trepidation, ABBV finished much lower than the strike price thanks to the biotech selloff. They bounced around the 52-week high which I didn't think they'd go much above for now at these levels but then came back down. I don't think there's much upside right now but they do have over 20 compounds in various trial stages with many expecting to either be approved or coming to market in 2-3 years. The premium was $109.22 after commissions so that was a nice add to my cash in a little over a month.
MAT didn't trade either. It had a little run up close to 40 and then fell back with the latest earnings release. MAT was my speculative trade since I think it may take a year or so for them to either get the doll business back on track or to add to/change their product line. They've bought the MEGA brand (a competitor to Lego) and are working off their inventory glut. The financials look pretty good to me and I may still take a small position with a 4% yield. Both MAT and HAS will need to diversify more into either video or technology-based toys in the future. I think it's a sad trend but we'll watch what they do over time. After commissions, I made $124.22 for a little over 2 months.
I now get the use of the cash covering the MAT put plus the premiums. I've been shopping but nothing is really striking me as dirt cheap so I'll just sit on it for now. Thinking of adding a little to OHI since they, again, have boosted the dividend. Utes have had a sustained uptrend for the last couple months so I'd rather look elsewhere. Doing nothing strikes me as an intelligent move right now. N'est pas?
INTC got assigned at $25.00. After commissions, the proceeds were $2538. Not as much as INTC is worth today due to it's recent run up but a 27% gain over my purchase price. In the meantime, I collected a bunch of extra shares reinvesting those dividends. My position is now at the size I wanted it in the portfolio and will keep reinvesting. I still think Intel is a long term hold. The dividend is adequate at a current rate of 3.3%, the company is changing structurally and focusing on the weaker areas, the new CEO has had some interesting comments on where he wants to go and they still have plenty of cash with which to execute and maintain the dividend.
With a few days of trepidation, ABBV finished much lower than the strike price thanks to the biotech selloff. They bounced around the 52-week high which I didn't think they'd go much above for now at these levels but then came back down. I don't think there's much upside right now but they do have over 20 compounds in various trial stages with many expecting to either be approved or coming to market in 2-3 years. The premium was $109.22 after commissions so that was a nice add to my cash in a little over a month.
MAT didn't trade either. It had a little run up close to 40 and then fell back with the latest earnings release. MAT was my speculative trade since I think it may take a year or so for them to either get the doll business back on track or to add to/change their product line. They've bought the MEGA brand (a competitor to Lego) and are working off their inventory glut. The financials look pretty good to me and I may still take a small position with a 4% yield. Both MAT and HAS will need to diversify more into either video or technology-based toys in the future. I think it's a sad trend but we'll watch what they do over time. After commissions, I made $124.22 for a little over 2 months.
I now get the use of the cash covering the MAT put plus the premiums. I've been shopping but nothing is really striking me as dirt cheap so I'll just sit on it for now. Thinking of adding a little to OHI since they, again, have boosted the dividend. Utes have had a sustained uptrend for the last couple months so I'd rather look elsewhere. Doing nothing strikes me as an intelligent move right now. N'est pas?
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan