Instead of a new thread...I bought 100 shares of IBM today. My brother in law suggested it. Picked it up at $106.59. Then I did a covered call at $8.00 for the Jan 22, $115. I'll pick up the dividend...5.9% Everybody yawn...
What makes you say you’re a value investor? Was your decision based upon relative earnings yield or just a price chart?
Options...Ug... So you got the 100 shares at $107 (just rounding off.) You then sold a call for Jan 22nd 2021 and got $800 premium? If by Jan 22nd the price is at $115, what happens then?
I'm 65...When I was a teenager my dad thought anything over a 10 PE was overvalued!! Then twenty years later it was 20 times earnings. Now you have to almost throw away the PE. My criteria is a combination of established companies (McDonald's, ADM, IBM, Coke, Walmart), and industry leaders. They have established market share. They may lose some, but not in big ways (think K-Mart, Sears, Radio Shack). Price chart comes into play...Example, the oil industry (think Chevron). If I didn't own it already, I would buy stock in it. Example of why I like Chevron; market share, locations, clean bathrooms (matters to upscale people), was short in oil reserves...But bought more reserves cheap. Also; many of the locations can be converted to electric charging stations, constant dividend, cheap in a down market, etc. Haven't looked, but I bet they have refinanced some of the debt reallll cheap. One last thought...One of my largest holding (have held for over 30 years) Royce Value Trust (RVT). I study their top holding...And many times invest in those stocks. I just do further research on their top 10 companies. An example of a buy I did with them. They had a heart stent company as one of their top holding. I knew cardiologist were moving away from heart bypass to more stents. This company had market share. No, it did not have great earning...But they were plowing their earning back into product. In a few years...In came the earnings. You throw out PE and earnings on that one...But they were gaining and retaining market share!! CEO was paid fairly, but not over the hill...Same with their board. Stock grants...Yes, but they kept the pay lower for further profits (and stock reward) down the line...
Buy something else...If it gets called away (just guessing), over a 15% annual return...Including dividend (and reinvestment of dividend and option money). Better than a CD I can tell you that...
In this market with the VERY GOOD chance the SP500 index will see ~3000 in the next two month, why not sell puts on IBM, say 90 puts, and when it gets there assigned and THEN write the covered call! Methinks we are not done with the downslide.
He sold the Jan 2022 115 Call for $800. (2022 ... not Jan 22, 2021) If IBM price is 115 or higher at expiration on Jan 2022 then his shares will be sold for 115. He paid $10,659 for the 100 shares and will receive $11,500 if called away. His profit is $11,500-$10,659=$841 plus $800 (amount received for selling the call). $1,641 profit on investment of $9,859 for 15 months for ROI of 16.6% plus dividend yield.
If you want good dividends Sunoco. I bought it lower on plunge down but have added. https://www.dividend.com/stocks/energy/oil-gas-coal/refining-marketing/sun-sunoco-lp/
This will breath some life into Coke. The market's on fire. https://www.bloomberg.com/news/arti...ers-with-coke-to-bring-hard-topo-chico-to-u-s Once you try a hard seltzer, you'll never drink a beer again. Here's a segment snap-shot: __________________________________________________________ Report Overview The global hard seltzer market size was valued at USD 4.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2020 to 2027. Rising demand for drinks that are gluten-free and low ABV content in the developed economies including the U.S., Australia, and South Korea, has created a great opportunity for the market. Additionally, the increasing number of manufacturers has been entering the market creating availability of a large variety of products. The manufacturers have been running marketing campaigns to create a wider penetration. A major reason behind the increasing adoption of hard seltzer is the reduced content of calories and carbohydrates in comparison to beers and other mixed drinks. A blend of carbonated water, alcohol, and fruit flavoring contain about 100 calories and 2 grams of carbohydrates per 12 ounce can, compared to 150 calories and 15 to 30 grams of carbohydrates in a similar-sized beer. These products are expected to be one of the favorite choices among people who prefer to drink alcoholic beverages while restricting their carbohydrate or calorie intake. Furthermore, their use of fermented sugars, rather than fermented grains, makes them gluten-free making them suitable for consumers suffering from a gluten allergy. The product enjoys a niche market and multiple product launches have played a crucial role in the growing popularity of the product. Kopparberg, a Swedish manufacturer launched a range of hard seltzer drinks in the U.K. in May 2020. The product has new packaging and design which is based on iridescent graphic bubbles. These are inspired by the sparkling water that forms the product’s core and reflects the refreshing lightness of seltzers. The bold colorfulness represents the full fruit flavor of the product. ABV Content Insights Hard seltzer with ABV content of 5.0% to 6.9% contributed a share of more than 45.0% in the global revenue in 2019. Popular brands offering hard seltzers with the aforementioned alcohol content include Arctic Summer, Bluemarble Pure Love, Brizzy, Bud Light, Canteen, Cutwater Spirits, Ficks, Kona Spiked, Lift Bridge, Pompette, Seekout, Truly, Vive, White Claw, Wild Basin, and NATRAL. CANTEEN’s hard seltzer is made using real vodka with sparkling water and all-natural flavors. It was launched in March 2020. Hard seltzer with ABV content of 1.0% to 4.9% is expected to register the fastest growth rate during forecast years with a CAGR of 16.6% from 2020 to 2027. Major brands offering these products include Barefoot, Bon and Viv, Two Roads, Henry's, High Noon, Narwater, Omission, Press, Pulp Culture, Smirnoff, Willie's Superbrew, and Crook and Marker. Distribution Channel Insights Off-trade contributed a share of more than 55.8% of the global revenue in the market for hard seltzer in 2019. Hard seltzers are being increasingly sold through hypermarkets, supermarkets, convenience stores, mini markets, kiosks, wines, and spirits shops. Online channels have also been rapidly offering alcoholic drinks including hard seltzers. In May 2020, Taffer’s Mixologist partnered with an e-commerce platform, Thirstie, which provides DTC sales for alcohol brands, in order to allow the customers to buy hard seltzer through online platforms. On-trade is expected to register the fastest growth during forecast years with a CAGR of 16.5% in the hard seltzer market from 2020 to 2027. An increasing number of consumers drinking hard seltzers in bars and restaurants is creating a massive opportunity for the product. Hard seltzers have disrupted the U.S. on-premise space dramatically. Many consumers are actively choosing seltzers over their normal drink of choice when they are out of the house instead of beer and cocktail. Regional Insights Americas has been registered to make the largest contribution in the market of over 70.0% in 2019. Product launches have played a crucial role in the wider penetration of the product in the region. For instance, California-based Sudwerk Brewing Co., launched a product named “Life Is Hard Seltzer” in May 2020. The product is available in various flavors including black cherry, grapefruit flavors, and passionfruit. These products are fermented using sugar and yeast and then flavored with natural fruit concentrates. The company sells these products in the preposition of four 16-ounce cans in most grocery stores across the U.S for USD 13. Along with choosing a single flavor, a mix of all three flavors is available in a combo pack of 24 cans that is priced at USD 75.0. Asia Pacific is the fastest-growing market for hard seltzer and is expected to witness the fastest CAGR of 17.0% from 2020 to 2027. The industry is expected to witness strong potential as a result of increasing demand in developed economies including South Korea and Australia. As a result, companies have been launching new products to tap their buyers. For instance, in May 2020, Fellr, an Australian brand launched two locally brewed alcoholic seltzers flavors in Lime and Soda and Dry and Lime in Australia. Key Companies & Market Share Insights The market is expected to remain one of the potential investment zones for alcoholic beverages manufacturers on account of rising demand for low content alcoholic beverages among millennials. Over the past few years, it has been noticed that product launches have been played a crucial role in widening the penetration of the product. In June 2019, Two Brooks, a hard seltzer company launched its products in the U.K. The company sells its products in packs of 250mL available in three flavors including Passion Star, Mango Hi-Ball, and Lime Cooler. These products are free from artificial preservatives, flavorings, or sweeteners, which ensures that it is a 100.0% natural product. Some of the prominent players in the hard seltzer market include: Anheuser-Busch InBev Barefoot Cellars Blue Marble Boathouse Beverage Co. Future Proof Brands LLC CUTWATER SPIRITS Ficks & Co. HIGH NOON SPIRITS COMPANY Kona Brewing Co, Lift Bridge Brewing Co.