So far so good on this new buy signal. I am fully positioned LONG 2000 shares with 4 days till ex-dividend day (9th).
My first target to take down 1/4 of my position is the $16.60 range. On the 2,000 shares my goal is to take down risk as the trade moves in my favor with the last 1/4 coming down when I get the next sell signal.
My hope is that I will capture more of the upside by taking profit in lots and lessen risk by having less shares when sell signal is issued. Perfect? Not all…but I am staying long 1000 shares at all times. Currently 1,000 shares will generate a $250 coupon payment. With a little good luck, I will be long the full 2,000 shares on close 12/09/ and that coupon payment will result in $500 in profits plus potential profits of scaling out of the trade with price appreciation.
Coupon payment total for 2016: $3.23
Why am I trading CEFL you might ask? Good question! 2,000 shares of CEFL generated $6,460 in income for 2016. I am trying to “beat” the return of buying and holding (and limit my risk of ruin) this product with a trading system I developed. Follow along…