Call me if you want to discuss this. (705–441–4566)
Over the last month, the market rose 5.97%. Rosi and I earned 7.22% during that time.
How can you do that?
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Call me if you want to discuss this. (705–441–4566)
On December 6, as soon as the NYSE opened at 9:30 AM, we wrote covered calls on the SPY shares we have in three portfolios, expiry date at the end of the same day. The strike price was $US 607. That earned $US 127.00 for every hundred shares for SPY. We own enough shares of SPY to be able to live comfortably on that income.
Rosi and I do this every day, Monday through Friday, that is not a market holiday. In over 50 years of investing, I have found this to yield the best results.
The only way to do better is to do something illegal. Crime pays unless you get caught.
How risky is it?
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One of our members recently asked: “What do you think of shares S&P /TSX 60 index Fund (TSX : XIU)? Yes it is a Canadian ETF of 60 of the biggest companies .
My response follows.
I have not considered S&P /TSX 60 index Fund (TSX : XIU).
SPY, which represents the S&P 500 and its predecessors, representing the American economy, have been the best-performing exchange-traded funds in about 200 years.
We encourage our members to stay with that.
Compliments for the season to all of you and best wishes for the season and every day!
Milan
TD webBroker has a promotion now. They will give you a gift of one percent of any money you transfer to TD webBroker from any other bank.
For example, if you transfer $100,000 you will get a gift of $1000, risk-free.
If you don’t have a TD web broker account, they will be happy to open one for you. Make sure that it is a margin account.
Canadians are not allowed to sell cash-covered puts in their tax- advantaged accounts (RIF, TFSA, RRSP and the like) as Americans can. However, they can do so in a margin account and that is the only reason to have one.
Nassim Nicholas Taleb, the author of many thought-provoking books, has come up with the concept of The Turkey Problem.
A turkey that is fed every day will believe that it is the general rule of life to be fed every day. But then, the day before Thanksgiving, the unexpected happens as the chart above shows.
A glance at the charts of individual securities which fall out of bed will show that they look very much like the chart of Taleb’s Turkey.
The chart below shows history. The entire market will certainly go the way of Taleb’s Turkey, from time to time, as it has in the past.
President Biden recently pardoned two turkeys from the usual turkey fate before Thanksgiving. How close to that point are we now? President Biden will not pardon investors.
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Many find it challenging to come up with a suitable gift idea for friends’ or relatives’ birthdays or Christmases or anniversaries and other gift-giving occasions.
One of our members solved that problem by giving a friend a subscription to Monday Morning Millionaire ($12.00). A one-hour investing session with us would also be great ($300).
To do so go to our website and tap “Sign Up”.
The recipient would benefit far more than the cost of the gift.
Call me if you want to discuss this. (705–441–4566)
On October 20, as soon as the NYSE opened at 9:30 AM, we wrote covered calls on the SPY shares we have in three portfolios, expiry date at the end of the same day. The strike price was $US 591. That earned $US 133.43 for every hundred shares for SPY. We own enough shares of SPY to be able to live comfortably on that income.
Rosi and I do this every day, Monday through Friday that is not a market holiday. In over 50 years of investing, I have found this to yield the best results.
The only way to do better is to do something illegal. Crime pays unless you get caught.
How risky is it?
Continue reading “How Rosi and I invested on November 20, 2024”
On November 1o I published a post titled Why I hate weekends! The reason I hate weekends is because I cannot invest in the stock market.
But then, I looked around and found out that the Tadawul, the Saudi Arabian stock market is open on Sundays! Rosi and I invest in SPY which tracks the S&P 500. The Tadawul equivalent of SPY is KSA.
For KSA vs. SPY comparisons including fees, performance, dividend yield and holdings follow:
https://www.google.com/search?q=Investing+in+the+Tadawul%2C+the+Saudi+Arabia+stock+market&oq=Investing+in+the+Tadawul%2C+the+Saudi+Arabia+stock+market+&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIGCAEQRRg8MgYIAhBFGDzSAQgzNjI1ajBqNKgCALACAQ&sourceid=chrome&ie=UTF-8
Rosi and I have invested in an income property in Collingwood which we will be selling about a year from now. We will invest some of that money we receive in KSA and write (sell) covered calls and cash- secured put on it.
When we do that, we will report our results.
If any of you invest in Tadawul sooner please let us know how you make out.
Miserable old man or happy investor?
On November 12, 2024, I published a post titled Why I Hate Weekends. The reason I hate weekends is because I cannot invest in covered calls and cash-secured puts.
However, on looking around, I found that the Saudi Arabian stock market, Tadawul, is open on Sundays.
In the next few days, I plan to find out whether Americans and Canadians can invest in Tadawul, weather it has the equivalent of SPY and weather Americans and Canadians can write covered calls and cash-secured puts in that market.
I will publish my findings when I get them.
I hope there is hope.
Call me if you want to discuss this. (705-441-4566)
First thing in the morning Rosi and I sell covered calls and cash-secured puts on the S&P 500 every day that the New York Stock Exchange is open. (Only sell and never buy derivatives.)
On November 15th we earned enough premium income that day to exceed what I earned in a week when I was practising dentistry. It took about five minutes to do so.
For details, see below.