Well Janet left rates unchanged. Market seem fine with that. I’m bored of the entire conversation. Who cares… unless u have a lot of debt does it matter? The people who are effected the most seem to care the least.
CEFL – 17% continues to churn out cash. I am still on buy signal so holding full position.
BDCL – 15% moving at snails pace but still on buy signal
MORL – 20% is on a sell signal so half position is prudent.
SHMD – 17% is newest 2x income fund it’s on sell signal. My position is small I am going to build it over time to 500 shares on sell and 1000 on buy.
Current balance is $69,100 with annual income of $11,500 or 16.5% yield on the portfolio that’s appreciated 11.82% YTD
So another perfect trade. Full position of 3000 shares of CEFL in ex-div day qualifying for $.26 coupon payment per share. Price is $.48higher than my purchase price of 2nd lot of shares. That’s $480 price appreciation and coupon payment of $780 payable on 24th. Lot of negative articles on seeking alpha about closed end funds.
Well today is ex-div day for UBS Etracs ETNs. Will be be big sell off as prices adjust for the dividend payment. Hopefully over next few days the trend continues and price recovers and I collect the dividend. The chart below is CEFL at close yesterday.
So yesterday was gut wenching after getting long 3000 shares of CEFL on the break out to watch it sell off into ex div week next week. Because 5 Emma was above the 20 ma I did not sell 1/4 as I normally would. Also important to note the YYY (unleveraged) version of CEFL was still above the 20 ma. So really experience and weight of evidence I waited for today to confirm.
Price is currently above 20 am hopefully holds steady into the close. Sucks to have market down turn into coupon payment of $.26 on 3000 shares this month.
Income be $780 plus
$.78 share on 1000 shares of BDCL
Plus $.62 share on 300 shares of SMHD for $186.
Plus $.70 share on 570 shares of MORL $400.
Grand total of $2,145 in coupon payments on July 22nd. Assuming price holds up will be pretty profitable month.
I added my 2nd lot of 500 shares at $18.23 this morning in CEF for full 3000 shares. . Ex div day is Monday the 10th payout should be $.20-26 a share. $600 + I am also long full position 1000 shares of BDCL it goes ex div 10th as well paying $.78 for $780 dividend and long 500 shares of SMHD it should pay in $.60 range for $300 or so. All in all looking for $1500 in income payable on 22nd of July for all my hard work this month. Fingers crossed no big draft down between now and next Monday.
Previously I shared idea of taking a large position in $BDCL to capture the up coming dividend payment of $.78 a share. This cost me $19,580 (paid $19.58). Shares closed Monday at $19.91. That is $330 price appreciation. I mentioned in last post it completely possible capture the $780 in price increase alone.
Keep in mind on ex-div day the stock will fall by $.78 at the open. If I am sitting on $500 or more profit at that point the day before I will likely close Part of the trade lock in some of that gain.
If all goes as planned I take profits, qualify for dividend and price will recover from the $.78 price drop. Win-win all around.
Active or mechanical trading plan? Why not both? 75% of time I trade mechanically.
Not lot of new thought goes into the process. But from time to time I believe I can add alpha buy making reasonable evidence based decisions to increase my returns.
This month MORL, SHMD and BDCL all have their big payout. BDCL will pay whooping $.78 a share. That is 4% of current value.
I purchased 1000 shares at $19.58 last week. If you look at chart below we see solid two month support zone at $19 level.
For the last two months price bounced off this zone. So A stop loss around $18.75 range would be perfect. I’m risking $.83 ($830) for shot at $780 dividend and shot at even more upside.
I hope to see BDCL trade up into high $19.80-$20 range. Ex div Day price will drop by $.78. Assuming a slight move higher ex div Day price drop should keep me above my stop point and put me few hundred bucks below my entry price. I would then have option close the trade and capture the dividend or let the trade play out as long the $18.75 holds.
Most likely I will sell half once I qualify for the dividend and price gets back to even due to position sizing.
If BDCL runs higher in 10th ex div date might be prudent to sell part of the position because u basically captured the $.78 in price appreciation. I would be tempted to sell enough shares to take home that money, and qualify for large dividend to boot!