Thursday, July 18, 2019

Bag Count - An interview with Alfred Ferol


Alfred Ferol called me, he said this is the first time in a long time nothing is going on.   What do you mean Alfred?   Well, have I heard anything from The Money Madam?  Why not? 

You are right Alfred; I am starving for ideas and have not written much lately.  I have only four call expirations this Friday.  Who can live on only four call expirations? 

Well Madam I see many cross currents in buying and selling today.  Buying and selling stocks of course, buying and selling 737 Max, buying and selling dresses and pants, buying and selling options. 

Cross currents?  The other day I saw high bag counts and indeed that is supported by the data.  (Bag counts are the number of packages shoppers carry after buying.)  Consumers are spending money.  Everywhere we go, there are construction projects.  Interest rates are consumer friendly and so is inflation. 

Is there anything negative?  Negatives?   Politics; the people we pay after we elect them are a big negative. Savings income from low interest rates is a big negative.  The unknown, unknowns are always of concern. 

Positives such as the high bag count are critical.  The most significant part of American business is a high bag count.  I would weight bag count as having a 66.5% level of significance because the consumer is 66.5% of the economy.   Everywhere we go there is a high bag count because for the last 10 years consumers didn’t have jobs.  They didn’t spend money.  Now they have jobs.  Now incomes on the entire spectrum of jobs are increasing and this leads to spending.  Is there anything Americans love to do more than to spend money? 

Will the bag count continue?  Data again are on our side.  Consumers are both spending and saving more. So, what do you suggest?  Follow unemployment trends, follow consumer trends, these are opportunities.  Of course, follow The MoneyMadam.  When these data points change, you will adjust. 

Thanks Alfred, I always enjoy your input.

M* MoneyMadam

Friday, July 12, 2019

Another CAT call

I like Caterpillar's volatility.  I just buy CAT, cash the dividend check, wait for some headline news, sell ad call, have CAT assigned and then start over.   At some point this may stop because CAT either goes up too high and I don't have the chance to add on dips, or CAT goes out of business.  I don't think going out of business will happened.  And while we wait for the global growth needed to spur growth at CAT, I will use this yellow machine as a piggy bank.



M* MoneyMadam

Tuesday, July 9, 2019

LVS Las Vegas Sands

While I am out of the office on vacation, I am still making some money.  Calls for dollars.  Here is a trade I made today.   Added a little LVS and sold this call.

         
  7/9/2019 Price on Open Call Expiration   
  LVS $63.00 9/20/2019  
  Cost Basis:   Price on Option Contract Open $63.00  
  Strike Price:   $70.00  
  Call Premium:    $0.85  
  Dividend  Exp ex-div 9/18/2019 $0.770  
       
  Call Yield on Basis   1.35%  
  Call + Dividend Yield on Basis   2.57%  
  $ Gain if Assigned   $8.62  
  Max Return  if Assigned   13.68%  
         




M* MoneyMadam

Disclosure:  Long LVS with calls

BAC Bank of America Call

While I am on vacation, I still do a little money making and will post interesting trades.  Here is one I made today.

         
  7/9/2019   Call Expiration   
  BAC $29.39 9/20/2019  
  Cost Basis:   1/15/2019 $26.57  
  Strike Price:   $31.00  
  Call Premium:    $0.48  
  Dividend  Exp ex-div 9/6/2019 $0.150  
       
  Call Yield on Basis   1.81%  
  Call + Dividend Yield on Basis   2.37%  
  $ Gain if Assigned   $5.06  
  Max Return  if Assigned   19.04%  
         



M* MoneyMadam

Disclosure Long BAC with calls

Tuesday, July 2, 2019

Second Quarter Portfolio Updates

I have updated all portfolios effective 7/2/2019.

http://www.themoneymadam.com/p/blog-page_11.html

M* MoneyMadam

Sunday, June 30, 2019

GONE FISHIN'

I am on vacation.  

Working on a $200,000 portfolio that earns 4.3%.  

M* Money Madam