Headlines of Interest to Holders of Preferred Stock and Baby Bonds

2 thoughts on “Headlines of Interest to Holders of Preferred Stock and Baby Bonds”

1. My portfolios have been very strong over the last month, reaching all time equity highs. Downward pressure on interest rates probably accounts for half of it. Plus, right after “Liberation Day”, I bought some beat down names like UPS and CVX paying nice divvys.

   Then went after UNH when it had its capitulation bottom. That one, I ended up getting shares at $271 avg and have sold puts/calls against it for about $44/share in premium, reducing basis to about $227. Holding 200 shares but will probably drop 100 of them soon as that 100 are in my traditional IRA which I tend to be much more conservation (the other 100 in my Roth which I plan to keep which are encumbered by the Jan 330 covered calls at $42.50).

   Also, have been buying TLT (bought at 86 but have lowered basis by $5 by selling options) – hard to say, but it might get back to 100+ if interest rates do fall back on the long end.

   All this said, I have been accumulating cash (actually SGOV) over the past week thinking we might get better opps soon. Who knows? But liking the general trend here so far.

   Reply

2. I am happy about the Abacus lawsuit. Short sellers should feel pain when they shade the truth.

   Long ABLLL

   Reply