Our current trading portfolio with strike prices. Note these are trading stocks for us, but the strike prices we note would make fine additions to any portfolio for long term holdings.
Risk happens fast is an appropriate term for this stock and bond market. Valuations are stretched to the max in our opinion and any event that scares nervous investors will send many for the exits so caution is the operative word.
AAPL..Now our largest trading position with $161K in our position at $425 and $400 per share. Apple has been beat up so badly we believe these price targets stand well now. It is not the largest phone seller, but it remains the most profitable.
BTE..The only stock in our portfolio where we are below our strike price of $40. However the option premiums remain so rich that if we end up having to own the position we consider the risk worth the income. Canadian oil and gas remain the US best choice for an independent future from the middle east. BTE is knee deep in this business.
TCAP..We currently have an option out at $22.50, but once the option expires we will move up our strike price to $25. Our comfort in this business development company remains strong despite the worry over the Fed ending QE. Higher interest rates hurt these companies since borrowing costs increase, but TCAP is the lowest cost operation out there and continues to offer investors good income.
CTL..Our strike price of $33 is conservative, but CTL has a history of surprising with corporate events. With that said CTL continues to improve their business model and cloud infrastructure and remains a good income producer.
T...AT&T is a solid low risk producer of premium income and remains in our portfolio. Verizon has likely taken the lead in wireless service but T remains bigger than VZ. Strike price is $34.
BP...BP has some serious litigation issues, but we like our strike price at $40. There is risk, but the premium income is good and we will be glad to own it at $40.
HFC...Superb oil refiner which is in the sweet spot for profits due to the difference between the world oil price and North American mid continent land locked lower prices. Then gets to sell at the higher world refined gasoline price. Strike price at $41 gives us plenty of safety.
NOV..One of our latest additions. Our strike price of $60 gives us plenty of safety with this oil and gas drilling parts and equipment builder. There likely is not a single drill derrick in the world that does not have some part provided by NOV. The real deal is NOV is the leading provider for the rapidly expanding gas industry in North America and the reason Warren Buffet owns it.
BRK.B...Speaking of Warren Buffet we are now trading his stock at the strike price of $105, but currently do not own it as we wait for a pullback that gives us more comfort.
AFL..Another new addition where we have a position at $50. We believe AFL has a low valuation in a nice cash flow industry. The major business here is Japan where the population is getting old and needs this insurance.
FB..The sell off in FB has made us more interested in taking a position. Our strike price of $20 is a great entry point. If someone here can figure out how to take advantage of all those eyeballs they will make tons of money.
BCE...We like BCE, but at near $50 the price is too rich for us and we will be exiting our position in June.
SBY..Our comfort factor in this housing rebound play has weakened due to the huge buying of large hedge funds and we will exiting our position in June.
O..A great stock and great company that has gotten more than fully valued at over $50. We will exit our position in June.
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