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3 comments:
As I mentioned on the previous post, I think the technical picture may not be quite so bad. I finally managed to post a couple charts at http://jaloti.blogspot.com/2005/01/gold-charts.html.
I think this may prove to be a buyable dip for gold.
I think that the "artificial dividend" strategy is even a little bit better than that? Your $140 of positive cashflow on a $3021 portfolio is equivalent to a 4.6% dividend yield. If you owned the stock and received the dividend you would expect it to go ex the dividend. So you are still doing better out of the covered call strategy than you would have been by owning a dividend-paying stock unless the increase is 13.6% (ie, losing you 4.6% of your position as an ex-div effect).
otoh, it is well before coffee-time in London, so this may be wrong.
best,
dsquared
oh looooord ....
two mistakes:
1) this should have been attached to the post above
2) 1000 shares @ 30.21 is a $30210 portfolio, not $3021. Thus upsetting the rest of the analysis.
The best I can say is that at least I recognised the mistake quickly. COffee time ....
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