irvinehomeowner
Well-known member
Prediction: Carnival Floating Covid Quarantines
NEW -> Contingent Buyer Assistance Program
What do you think about oil tanker operators?
So it can also hedge as a storage facility. It playing out perfectly currently.
Some of these operate did great during this crisis.
Bought MITT @ $2.20/s last week, sold @ $2.76/s today.
Bought more IVR @ $3/s yesterday.
IVR is paying $0.50 dividend per quarter. So on a $3 stock it's paying $2 dividend/year. I'm using my IRA account for this one. Today (05/19) is the last day to buy for Q2 dividend distribution.
* Update: (Thanks to USCTrojanCPA) Dividend is paid in combination of cash and shares:
https://seekingalpha.com/pr/1786719...nd-preferred-stock-dividend-payment-dates-and
Seems like the dividend will be $0.05 per share and the other portion will be a stock dividend from what I could tell reading this...
On May 9, 2020, the Company's board of directors approved the payment of the Company's previously declared dividend for the first quarter of 2020 of $0.50 per share of common stock (the "first quarter dividend"). The first quarter dividend will be paid on June 30, 2020 in a combination of cash and shares of the Company's common stock to stockholders of record as of May 21, 2020. Given the uncertain and rapidly changing financial markets resulting from the COVID-19 pandemic, the Company's board of directors has determined that the cash component of the first quarter dividend (other than cash paid in lieu of fractional shares) will not exceed 10% in the aggregate, or $0.05 per share, with the balance payable in shares of the Company's common stock. This will allow the Company to preserve capital and enhance the Company's financial flexibility.
In accordance with the provisions of the applicable IRS Revenue Procedures, stockholders will be asked to make an election to receive the first quarter dividend all in cash or all in shares. To the extent that stockholders elect to receive more than 10% of the aggregate payment in cash, the cash portion of the payment will be prorated. Stockholders who elect to receive the dividend in cash will receive a cash payment of at least $0.05 per share. Stockholders who elect to receive the dividend in Company common stock will only receive shares of Company common stock. Additionally, stockholders who do not make an election will receive 90% of the dividend in Company common stock and 10% of the dividend payment in cash. The number of shares issued as a result of the dividend will be calculated based upon the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange on June 17, June 18 and June 19, 2020. Cash will be paid in lieu of fractional shares so that stockholders receive a whole number of shares of common stock.
I've been ringing the cash register by selling slightly out of the money puts on some of the airlines (AAL & SAVE).
WORK crashed today. I'm trying to learn options. How does that affect your $35 put?
I sold 10 $35 June 5th weekly puts for $1 so my cost basis in 1,000 shares will be $34. I'll go long and sell covered calls against the position.
The option will be exercised into going long the stock after the close of Friday. I can close out the puts before expiration at any time at market price but I'm fine going long the shares with a cost basis of $34 and using covered calls to bring the cost basis down. Same thing happened with 20 Zillow puts so I went long (2,000 shares) with covered calls and will be taken out of the position with a gain as the stock rallied this week.
momopi
Well-known member
If you subscribe to buying stock when there's blood on the streets, cruise operator, airline, REIT's, and oil companies are all bleeding.
While there is always a risk that the company might bleed to death, some companies are less risky than others because the government is likely to step in and perform CPR. The small fry (example, small oil companies) that Uncle Sam deem we can do without, will be left to live or die on their own.
I have slightly more faith in oil ETF's because, sooner or later most of us will return to the gas pump. Airlines is higher risk as businesses may opt for teleconference over business travel, and many people will either choose not to fly, or cannot afford to for their vacation. BUT I don't think the government will let Delta airlines die because air travel is still essential.
Cruise operators is purely leisure and not essential. Carnival managed to raise something like 6.25 billion dollars to keep themselves afloat with stocks, high yield bonds, and convertible bonds. They may return to operation in Aug but who is going to let them dock if there is an infection spread on board? On the other hand, the last shrimp boat afloat after the hurricane gets all the shrimp.
REIT's took such severe beating I would consider them as slot machines. Play responsibly.
While there is always a risk that the company might bleed to death, some companies are less risky than others because the government is likely to step in and perform CPR. The small fry (example, small oil companies) that Uncle Sam deem we can do without, will be left to live or die on their own.
I have slightly more faith in oil ETF's because, sooner or later most of us will return to the gas pump. Airlines is higher risk as businesses may opt for teleconference over business travel, and many people will either choose not to fly, or cannot afford to for their vacation. BUT I don't think the government will let Delta airlines die because air travel is still essential.
Cruise operators is purely leisure and not essential. Carnival managed to raise something like 6.25 billion dollars to keep themselves afloat with stocks, high yield bonds, and convertible bonds. They may return to operation in Aug but who is going to let them dock if there is an infection spread on board? On the other hand, the last shrimp boat afloat after the hurricane gets all the shrimp.
REIT's took such severe beating I would consider them as slot machines. Play responsibly.
irvinebullhousing
Well-known member
momopi said:
What do you think about oil tanker operators?
So it can also hedge as a storage facility. It playing out perfectly currently.
Some of these operate did great during this crisis.
irvinebullhousing
Well-known member
Euronav NV EURN: NYSE EURONEXT
Small play.
Small play.
momopi
Well-known member
I made a smallish bet on MITT at $2/share this week. This REIT has been severely hammered and if you buy you are betting that it will not bleed to death. They have suspended dividend payment to conserve cash. You should not expect the share price to recover back to $16.
http://www.agmortgageinvestmenttrust.com/news-releases/news-release-details/ag-mortgage-investment-trust-inc-provides-company-update-1
http://www.agmortgageinvestmenttrust.com/news-releases/news-release-details/ag-mortgage-investment-trust-inc-provides-company-update-1
Dr. CA Real Estate
New member
Who else got in earlier on Gilead?
momopi
Well-known member
momopi said:
Bought MITT @ $2.20/s last week, sold @ $2.76/s today.
Bought more IVR @ $3/s yesterday.
IVR is paying $0.50 dividend per quarter. So on a $3 stock it's paying $2 dividend/year. I'm using my IRA account for this one. Today (05/19) is the last day to buy for Q2 dividend distribution.
* Update: (Thanks to USCTrojanCPA) Dividend is paid in combination of cash and shares:
https://seekingalpha.com/pr/1786719...nd-preferred-stock-dividend-payment-dates-and
usctrojancpa
Well-known member
momopi said:
Seems like the dividend will be $0.05 per share and the other portion will be a stock dividend from what I could tell reading this...
On May 9, 2020, the Company's board of directors approved the payment of the Company's previously declared dividend for the first quarter of 2020 of $0.50 per share of common stock (the "first quarter dividend"). The first quarter dividend will be paid on June 30, 2020 in a combination of cash and shares of the Company's common stock to stockholders of record as of May 21, 2020. Given the uncertain and rapidly changing financial markets resulting from the COVID-19 pandemic, the Company's board of directors has determined that the cash component of the first quarter dividend (other than cash paid in lieu of fractional shares) will not exceed 10% in the aggregate, or $0.05 per share, with the balance payable in shares of the Company's common stock. This will allow the Company to preserve capital and enhance the Company's financial flexibility.
In accordance with the provisions of the applicable IRS Revenue Procedures, stockholders will be asked to make an election to receive the first quarter dividend all in cash or all in shares. To the extent that stockholders elect to receive more than 10% of the aggregate payment in cash, the cash portion of the payment will be prorated. Stockholders who elect to receive the dividend in cash will receive a cash payment of at least $0.05 per share. Stockholders who elect to receive the dividend in Company common stock will only receive shares of Company common stock. Additionally, stockholders who do not make an election will receive 90% of the dividend in Company common stock and 10% of the dividend payment in cash. The number of shares issued as a result of the dividend will be calculated based upon the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange on June 17, June 18 and June 19, 2020. Cash will be paid in lieu of fractional shares so that stockholders receive a whole number of shares of common stock.
usctrojancpa
Well-known member
momopi said:
I've been ringing the cash register by selling slightly out of the money puts on some of the airlines (AAL & SAVE).
usctrojancpa
Well-known member
Sold $35 weekly puts on WORK today going into earnings tomorrow and sold $27 monthly puts on RDFN that expire in about 2 weeks.
paperboyNC
New member
USCTrojanCPA said:
WORK crashed today. I'm trying to learn options. How does that affect your $35 put?
usctrojancpa
Well-known member
paperboyNC said:
I sold 10 $35 June 5th weekly puts for $1 so my cost basis in 1,000 shares will be $34. I'll go long and sell covered calls against the position.
aquabliss
Well-known member
These closed at .90c, your position still looks good. Just curious when you sell puts do you ever get called early before expiration or you just hold them until expiration and profit the purchase price minus the closing price at expiry?
Also as the seller can you buy these back at Market price anytime or you?re at the mercy of the expiration date?
Also as the seller can you buy these back at Market price anytime or you?re at the mercy of the expiration date?
usctrojancpa
Well-known member
aquabliss said:
The option will be exercised into going long the stock after the close of Friday. I can close out the puts before expiration at any time at market price but I'm fine going long the shares with a cost basis of $34 and using covered calls to bring the cost basis down. Same thing happened with 20 Zillow puts so I went long (2,000 shares) with covered calls and will be taken out of the position with a gain as the stock rallied this week.