Thursday, September 23, 2010

9/23/10 Update: AAPL, NLY and Family

What I’ve been up to this week:

I initiated a small position (110 shares) of Annaly Capital Management (NLY) for myself. I don’t look at this as a long term investment (5-10 years) but as long as interests rates remain subdued- and I think they will for the next couple of years- NLY should be able to maintain its RIDICULOUS 15% Dividend Yield. Its Ex-Div date is rapidly approaching; this might be a good place to park some short term cash.  I’m looking to DRIP these dividends moving forward until I cash the position out.

On the Option front, I was monitoring APPL for the last few months waiting for a break out to my $300 price target. I believe it was mostly being held down by the 1130 resistance level. Once we spiked above the 1130 level, I bought 10 Oct 280 calls which I cashed out later in the day for a gain of $1,250. Once the move above 1130 was confirmed, I bought 10 AAPL 290 Calls at $5.05 per contract. I still hold this position and am currently up considerably. The momentum is still there, so I am going to ride this horse as hard as I can.

Additionally, I was asked by my mother (in law) to help put some of her savings to work for her. She is retired, and living on a fixed income. She knows I am not a financial advisor, but I’m always willing to help a family member. Plus, by viewing what she was PAYING someone to do for her- she is going to be better off taking some advice from me. So when you see some Bond Funds and ETF’s in my portfolio, you will know why. Overall, I think my mother’s portion should yield about 6.5% in very stable investments. Furthermore, I am maintaining 20% cash for her in a money market account to hedge my bets.

We are holding the 1130 level on the S&P, this is crucial if we are going to make another leg up.

It’s also been a very busy week at my real job, at home and with school. Burning the candle at both ends.


All the best,

CM

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