Friday, March 4, 2022

Added JPM @ 52 week low and sold a call

Underlying Security Symbol: JPM

 

You're suppose to own banks when inflation is raging.  The reasoning is that interest rates go up during times of inflation and therefore banks can lend out money and get more income from that loan.  Today is an oddity.  Due to Ukraine's invasion by Russia and the risk that imposes, I think there was a flight to the safety of the U.S. backed bond....any U.S. bond.   More buying of the bond makes the cost of the bond increase and the interest rate go down.  That is how JPM got to it's 52 week low.

I added today because I believe in the long run, interest rates will go up and JPM will benefit.  In the meantime, it's nice to make a living in a down market.   Moreover, JPM has nice 3% yield which is another source of income while we wait for things to settle down.

 Today's call:

 


 

 

 

 

 

 

 

 

 

 

 

MM MoneyMadam

Data from Schwab.com and Marketx

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