*Investors Blog*

[Pablo]

Income investors ONLY. You guys still working, growing, please ignore.

In an IRA account of any type, buy 1000 shares of VGLT for around $54.50

Then sell to open against those shares 10 contracts Aug 15, Strike 55. Take your $1300 premium.

Sit on the fund and collect the dividend. If the contract executes, then ok. You also made a few $. If the fund goes down, stays the same, contract expires worthless. Rinse and repeat.

Very simple, low risk. If rates somehow skyrocket, yeah that would be a primary risk of any long bond fund. But, it's for income, remember I told you growth guys to ignore.

 

[johnmyster]

One by one, executive branch creating volatility in various markets.

Volatility = buying and selling opportunities.

All the boomers still fretting on how the market is so unstable. I'm up 8% YTD. Did some adjustments yesterday and today. Bring it.

 

[99Saturn]

Which will play directly into the hands of those wanting single payer. Which is fine by me FWIW.

These big companies play way too many games. I get a couple scripts - were $4 at walmart.

Doc changed one to "time release" so now it was $39 at walmart. OK I give them my insurance, so its now $12 at Walmart, but my one that used to be $4 is now also $12? Who got the extra $8? I have a guess.

Could be Walmart (pharmacy), could be your insurance, could be the manufacturer... hard to tell.

Generics are squeezed at the pharmacy counter from a MAC price (maximum allowable cost). Basically the MAC is an upper limit a PBM and therefore a health plan will reimburse the pharmacy. Pharmacies negotiate MAC pricing with the PBM/health plan, but they procure from a wholesaler (who is likely buying from a manufacturer at some type of a discount off the list price), and passing some savings (through net price or rebates) to the pharmacy procuring the product. There's likely a fee like a dispensing fee paid to the pharmacy for the physical service of dispensing the product. There is also (at least historically) spread pricing that comes into play, but it is being litigated out in some states so it isn't even an option.

Those $4 prescriptions are close to the loss leader concept, to draw consumers into that pharmacy. Ever been to the pharmacy counter, asked your insurance price, the cash price and a third party discount card price - its not uncommon for all the prices to be different and one isn't always the best, it varies by drug. Ask the same question of two different pharmacies and you might have 6 different answers.

My $.02 on single payer - we have 3 big integtated pharmacy benefits managers (that have largely integrated health plans) and three big wholesalers all of which have interest in maintaining their business model.

 

[Dave Hess]

Nice day today….. I made some money.

 

[SC Maintenance]

Income investors ONLY. You guys still working, growing, please ignore.

In an IRA account of any type, buy 1000 shares of VGLT for around $54.50

Then sell to open against those shares 10 contracts Aug 15, Strike 55. Take your $1300 premium.

Sit on the fund and collect the dividend. If the contract executes, then ok. You also made a few $. If the fund goes down, stays the same, contract expires worthless. Rinse and repeat.

Very simple, low risk. If rates somehow skyrocket, yeah that would be a primary risk of any long bond fund. But, it's for income, remember I told you growth guys to ignore.

So if you can rinse / repeat your making like 14% on US treasuries?

 

[Pablo]

So if you can rinse / repeat your making like 14% on US treasuries?

I'm not sure about 14% but certainly better than the monthly dividend. Thing that bugs me is so few bond funds allow options.

Anyway, to me just another way to diversify and improve yield.

BACPRB pays in a couple days. I love income in my old age. hahahahahahaa

 

[SC Maintenance]

I'm not sure about 14% but certainly better than the monthly dividend. Thing that bugs me is so few bond funds allow options.

Anyway, to me just another way to diversify and improve yield.

BACPRB pays in a couple days. I love income in my old age. hahahahahahaa

I can only guess people buying your call are hedging rates, so a treasury is likely the prefered hedge?

1300 / 55000 is about 2% in about 3 months, so 8% a year plus the 4.8% yield. I suppose next quarter selling the call may not be so lucrative, but yes it looks like a good deal - other than having to hold 30 year treasuries. Yuck.

 

[Pablo]

I can only guess people buying your call are hedging rates, so a treasury is likely the prefered hedge?

1300 / 55000 is about 2% in about 3 months, so 8% a year plus the 4.8% yield. I suppose next quarter selling the call may not be so lucrative, but yes it looks like a good deal - other than having to hold 30 year treasuries. Yuck.

The singular case when a fund is “better” than individual bonds. For never wanting to buy 30 years

 

[SC Maintenance]

The singular case when a fund is “better” than individual bonds. For never wanting to buy 30 years

True, easier to bail from, but your still carrying the duration risk. Not saying its a problem, but the risk in the end is the same. Buying in here however probably isn't an issue. The treasury can't stomach much more than 500bps, so no way they let it get much higher

 

[Pablo]

I can only guess people buying your call are hedging rates, so a treasury is likely the prefered hedge?

This part, I'm never thinking it's "people", always thinking it's computers.

 

[Zee09]

I set an alarm for BRK.A and nailed it within $5....did I buy....nope because the stock still has the smell of fear on it and it's currently not giving the highs it did a few weeks back...

I'm only in it for the easy cash..

 

[gfh77665]

Absolutely no human being can accurately answer that. That's why I stressed its a long term opportunity. .

I would expect by years end things will look a whole lot different. I am an investor, not a trader, so I am fine with a recovery that takes even a year or two.

Right on track, if not even faster.

 

[SC Maintenance]

I set an alarm for BRK.A and nailed it within $5....did I buy....nope because the stock still has the smell of fear on it and it's currently not giving the highs it did a few weeks back...

I'm only in it for the easy cash..

The short and longer charts look sort of blah. It is very over sold, on very low volume however? Meh.

 

[Zee09]

The short and longer charts look sort of blah. It is very over sold, on very low volume however? Meh.

True but last week $50k was yours in a few hours... WB semi retired and fear crept in.. .
A few years back I was in it for $320s

 

[Zee09]

April 25

 

[SC Maintenance]

True but last week $50k was yours in a few hours... WB semi retired and fear crept in.. .
A few years back I was in it for $320s

Charts can't predict that Warren Buffet was going to announce retirement after 60 years. If you had the word he was and held out from the rest of us, @Pablo is going to be unhappy.

 

[Zee09]

Charts can't predict that Warren Buffet was going to announce retirement after 60 years. If you had the word he was and held out from the rest of us, @Pablo is going to be unhappy.

Nobody would even think he'd be around 94 years and still sharp..

 

[SC Maintenance]

April 25

View attachment 279191

This doesn't tell me anything. The majority of moves happen after hours. A large intraday spread is pretty unusual - Oval office announcements not withstanding.

 

[SC Maintenance]

Nobody would even think he'd be around 94 years and still sharp..

Charlie was 99?

 

[Zee09]

This doesn't tell me anything. The majority of moves happen after hours. A large intraday spread is pretty unusual - Oval office announcements not withstanding.

I'm not telling you anything
I am a watcher of this daily
We have different approaches anyway... I watch the spread not the financial drama