BAGAKOAA; October 15, 2012 Thoughtus Interuptus

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October/2012

As I sit here beginning my blog for Monday October 15th, I can't help but stop and realize I have been retired for about 7 weeks now. 

 

People are now asking me how I like retirement.  My buddy Douglas has embraced it with both arms his heart and his soul.  I am still struggling with the concept of trying to figure out when it actually starts.

 

True, I do not have to read my weekly cash analysis or read the copious e-mails from various departments in a company or attempt to measure a specific competitive threat or understand why a project might be coming in behind schedule or over budget.

 

What I do have is thoughtus interuptus all day long.  Here are few examples.

 

I am trying to read about an investment suggestion from on of my highly qualified Financial Advisors.  I get a call from my lovely wife to come pick our dog up because it is too hot for the dog to be on the walk.  Now this is the walk that started only 27 minutes ago where I took my lovely wife and dog to a drop off point so they could see a new set of scenery on their walk.  Thoughtus Interuptus.

 

Now I understand that Devin thinks that I don't work when I sit at home in front of the computer, but 80% of the time I am dealing with my new job, managing the monies that have recently been bestowed upon us.  That is on top of the accounts we already have as well as those in the Salve Lucrum Family Fund.

 

(For new readers, that is an account entrusted to me with the principal guaranteed and a return guaranteed by me personally.  I call it my reverse ponzi scheme.)

 

Another thoughtus interuptus would be hearing the doorbell ring and watching a UPS driver drive away.  Now that does not sound like that big of a deal, but with four dogs, it take them about 3 minutes of wild howling to settle back down and I, of course have to figure out that it was the UPS guy and not a home invasion in process.  (That would be a good trick.  Right now with all the construction going on in and outside of the house, I could not find a pair of underwear this morning.  If we had a home invasion robbery, I would say shoot me now because I do not know where a damn thing is.  It might be nice to have a bullet wound and spend a few days in a quiet hospital.)

 

Another thoughtus interuptus would be not knowing if the dogs had been out in a while.  Ya see Devin and I come and go all day long.  I will get in the house, run upstairs to catch the close of the day on Wall Street, get into the Schwab accounts, then after the close have this really good idea about selling some calls on a few of my energy plays because the sector is looking very weak over the next few months.  (Don't worry boys and girls I won't get too stock heavy here at the moment.)  As I analyze a January XOM call options and trying to decide whether to sell a $92.50 or  $90.00 call, it hits me?  Have the dogs been out?

 

I close down the Schwab website, and go down stairs to take the dogs out.  With the backyard town up and workers in the back, that chore now takes several more minutes than just letting them run out back and ruin our lawn.  Thoughtus Interuptus.

 

By the way we are getting new rocks and lawn in the backyard for them to ruin.  We will have less yard to ruin, but lots of nice stone steps for them to use while they ruin the new yard.   Here is a picture of the work in progress.

  by 1

We also have a mysterious leak in the back yard.  The guys have spent two weeks trying to figure out the source.  No matter where they dig, they find water.  Our pool is not leaking and our spa is not leaking.  But we now have about 2 grand into digging and looking for water. 

by 2  

Wouldn't it be a kick of the contractor was just filling the holes with water so he can keep the gravy train going? 

 

Anyway every so often I have to check on their progress and that of course is "thouhgtus interuptus". 

 

I went to see my doctor today.  It was weird because I had set the appointment when I was dutifully employed.  Now I came in as a retired person.  Knowing there was no hurry to get done must have helped because my blood pressure was low enough that the tech wanted to take it again to be sure.  Usually she wants to take it again because it was so high.  I am still one of the youngest people in his office. 

 

He asked me if I was behaving myself.  I said, "I just spent three days in New York and two of the nights I dined on Mulberry Street, what do you think?"  He smiled. 

 

I just had a great idea . . . uh oh its 5 O'clock time to feed the dogs. . . thoughtus interuptus.

 

But before we get into the market stuff, if you have been following the progress or lack there of, to get the Space Shuttle into place, they had to park the thing in a rough part of Los Angeles the night before last.  Here is the results:

 

   shuttle

I know you want some more before we get into the boring stock stuff.  Here is the shot of me with Gumby as promised:

 

gumby

Ok one more.  I am very proud of Jack and his ability to balance school and TV, but some time I have to warn him that too much TV is just too much TV.
jack tv
Ok One More because I am getting tired.  I spent some time with a real blockhead at the Comicon Show Saturday afternoon.
lego man
Ok one more, but really this has to stop.  For my friend Christer in Sweden who thinks he is the only chubby boy who can ride a bike.
craftsman

Retails Sales and China and The Citi

 

There was a nice report out of China this morning that made the market perk up a bit.  Then we had some decent retails sales number (including some nice auto sales numbers.  I hope they are not counting all the ones I have won recently.)  Then C report a beat of earnings expectations.  (Watch that one real close as it appears to be a tax adjustment and bond sales.  It ain't the thing that will sustain price growth.)

 

The S&P 500 seems to be playing a cat and mouse game with 1425 on the low side and 1465 on the high side.  Keep an eye on this channeling.  If during this correction we fall through the 1425, it could be a sign that we be going down down down, that ring of fire that ring of fire.  (Sorry, just channeled Johnny Cash for some reason?)

 

Volume was missing today so the bounce was not a hearty one.  Keep an eye, (that is twice so we are ok on eyes.  If I do it again you gots some trouble Lucy.), on the tech earnings this week. IBM, GOOG, INTC, HPQ, to name a few can move this market up or down if they all align in the same direction.  AAPL reports next week and the retail sales number hinted at some impressive iPhone sales.  Will the Fuuited on make back to 700?  What do you think Hutch?  You called a peak at 700.  Is this adjustment done? 

 

We are making money in this whacky market.  We have some Puts expiring in about 5 days.  Here is the recap. 

 

We have 4 PUTs we sold in early September due to expire in 5 days.  All but one should expire worthless allows us to keep the initial premium we got when we sold.

 

BBBY we sold some 57.50 puts for 60 cents each (60.00 a contract).  Remember, we only did this on companies we would not mind having PUT to us, in other words we knew thre was a chancewe might have to buy the underlying stock.  This should expire worthless allowing us to see a 100% gain.

 

WAG, we sold some 36.00 puts for 1.51 a put (151.00 a contract).  Walgreens is trading at 36.32 and again we should close this out with a 100% gain on the 20th.

 

WFC, this is a close one as we sold some of Well Fargo's 34.00 puts for 1.44 each and the stock is right at 33.90.  With the beat by CIT today and expected beats by BAC, we think this too will expire worthless letting us keep the premium.

 

Lastly, we will probably be put more shares of MSFT on the 20th.  We sold $30.00 puts for 93 cents each.  The stock is at 29.51 so we could be stuck for more MSFT at $30.00.  Not the end of the world and we would take them at that price.

 

All in all it will be a good month for the Salve Lucrum portfolio.

Salve Lucrum

 

 

 

 

 

 

 

 

Brian Ireland
 
 
Since 10/10/2012
BAGAKOAA;

I am not a professional investment advisor. Anybody reading my blog and investing accordingly must be out of their minds. I have made more money than I have lost. There are many more qualified people than I to actually tell you how to invest your money.

BAGAKOAA=Boys And Girls And Kids Of All Ages

Salve Lucrum=Latin for Hurrah for Profit.

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Dow 13,073

S&P 500 1,358

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