>> You’ll most likely see XOM in particular trade down at least another 10-15% by year end. @etec
I hear what you’re saying. In fact, I caught the CAT “falling knife” at $82 and now I wish I had waited a little longer.
On the other hand, it’s my IRA portfolio and I don’t plan to touch it for several more years. So if I buy a solid company that yields 3% to 4% I don’t lose much sleep if it goes down a couple bucks... I’ll have a capital gain in a couple or three years, plus the 4%.
Thanks for the thoughtful reply, and FRegards
I’m just happy I have ~~~150% puts on everything I own of size.
I made some poor sucker buy 400 of my COP the other day for $60 by exercising puts. (COP trading at $46 at the time) I was assigned 500 MRK today @ 57.50 but I can sell them any time for $60. Same drill.
*Some* IRAs allow long options and covered calls. You have to apply for and receive permission. I worry about big oil dividends, particularly COP. These stocks are going to be yielding 8 and 9% if they sell down as I believe they will and there is no way they will be able to maintain those dividends. The day any of those stocks suspend or cancel or “modify” their divs, the stock, no matter where it is trading at that point, will lose 1.5 years of dividend = ~~10% immediately. This is not a risk I am taking nor would I reco anyone else take. Oil stocks, stalwarts such as XOM, COP, CVX, in particular. If the overall market declines and oil declines and appetite for stocks decline, these will be a multimonth pukefest. None of us have to like it, but the outcome is nearly certain.
This is a liquidity event. I am going to repeat that.