Friday, May 31, 2013

Recent Option Transaction

Since reaching a new high of $55.48 earlier this month, Realty Income (O) has sold off almost 16%  over the last 1.5 weeks.  The selloff started thanks to concerns about possible rising interest rates which I don't foresee happening anytime soon.  As long as rates don't jump higher then there shouldn't be much risk towards Realty Income's business.  Here's a snapshot of Realty Income's operations taken from their website.

"We purchase commercial real estate for cash leased to tenants that have a good business and operating track record. The leases are typically for 15 to 20 years, which provides us with dependable lease payments each month that are used to support monthly dividend payments to our shareholders."

Wednesday, May 29, 2013

The Cost of a Loss

We've all heard Warren Buffet's rules for investing.

Rule 1: Don't Lose Money

Rule 2: Don't Forget Rule 1

No investor ever wants to lose money because not only did they just lose money, but it's a validation of the fact that they were wrong.

Just how bad is a loss and how long does it take to get back to even?

Saturday, May 25, 2013

Weekly Roundup - May 25, 2013

Thanks to everyone that mentioned Passive Income Pursuit this past week.  I truly appreciate it and couldn't get the word out about DIY dividend growth investing or grow the blog without you.

I didn't get a chance to compile some links for this weeks installment but next week they will be back in full force.

Work was crazy to end the week and as we were starting to rig down our unit and tool, of course here comes the rain.  I can't really complain about it though because in almost 3 years, this was the first time I had to really be out in the rain.  Although I also got the joy of having it hail on me as well.  So with that big mess what usually takes us about 2 hours to do took about 3.5.

I could deal with that but then the road to get back to the highway was absolutely horrible and I had to have someone pull my little Civic through several spots.  After that the drive was easy but it took an hour for the first 10 miles.

In case you're wondering, yes this is after the cleaning a bit and no a Civic shouldn't have that much mud on it.

I'm home now for a bit.  We're getting up early today and will be heading up to a friends' lake house for some great times this weekend.

Hope everyone has a great Memorial Day weekend!

Thursday, May 23, 2013

2 More Options Transactions and a Closed Put

I tweeted about all these trades as they were executed but am just now getting a chance to get official write-ups going.  On Tuesday, May 21st I sold 2 put options one on Cisco and one on Clorox.  And yesterday May 22nd I bought to close the put option I had sold on Aflac.  I'm excited about the 2 new positions since they will allow me a solid return if the markets continue on their merry way or entry prices that I'd be very interested in making a purchase at.  The closed option was more of a play to lock in solid profits and free up some extra capital.

Tuesday, May 21, 2013

Cisco Dividend Stock Analysis

I wanted to take a more in depth look at a company I've sold some puts on, Cisco (CSCO).  Cisco is by no means a dividend champion, challenger, or even contender with only 2 years of increases, but the potential is there for rapid growth so I figured we should look a bit more into the company.  Cisco closed trading on Friday, May 17th at $24.04.

Company Background (sourced from Yahoo! Finance):

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP) based networking and other products related to the communications and information technology industries worldwide. It offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, access points, and servers, as well as function as aggregators on local-area networks and wide-area networks; and routers that interconnects public and private IP networks for mobile, data, voice, and video applications. The company also provides set-top boxes; cable modem CPE products, such as data, EMTA, and gateways; cable modem termination systems products; videoscape software products; and headend equipment, which include encoders, decoders, and transcoders. In addition, it offers collaboration products comprising IP phones, call center and messaging products, unified communications infrastructure products, and Web-based collaborative offerings, as well as telepresence systems that integrates voice, video, data, and mobile applications on fixed and mobile networks; and security products consisting of firewall, intrusion prevention, remote access, virtual private networks, unified clients, network admission control, Web gateways, and email gateways, which deliver identity, network, and content security solutions for mobile, collaborative, and cloud-enabled businesses. Further, the company provides wireless products, such as wireless access points, controllers, antennas, and integrated management solutions; data center products, which include blade and rack servers, fabric interconnects, and server access virtualization; and home networking and other networking products. Additionally, it offers technical support services; and responsive, preventive, and consultative support services for its technologies.

Sunday, May 19, 2013

Option Expiration Friday and a Closed Option

The 3rd Friday of May just rolled around.  What?  Already?  And with that comes option expiration.  Two of the puts that I sold expired this past Friday and I also closed one out late last week.  Work's been busy and the satellite has been very shady so the report for the closed option is just now getting done.

Saturday, May 18, 2013

Weekly Roundup - May 18, 2013

Unfortunately I had to head back to work last Friday so I didn't get the weekend at home, but around 2.5 weeks was still nice to have so I can't really complain.  It was a long drive to get back out to work and it was even worse because it was storming on the drive.  Such is the life of working in the oil field.  I've made up for that time though since then since we pretty much haven't done anything for 5 days or so, but I've still been getting paid.  The only bad thing was that I was stuck on the rig instead of getting to be at home with my wife.  It's times like these that really push me to remain focused on reaching FI at a really young age.

Thursday, May 16, 2013

Net Worth Update - April 2013

The markets continued their climb higher and brought my portfolio along for the ride since more and more of my net worth is tied to the markets.  While I don't necessarily care too much about the value of my portfolio increasing as much as the dividend stream increasing, a rising number is still good to see.  I had an absolutely outstanding month of saving with over $7,200 from my after-tax pay going straight into savings.  Got to love months like that.  I also had a little over $1,300 in total contributions to my 401k and just under $1,000 for my ESPP withholding.  Those made up the bulk of my net worth increase that I could control, the rest was from market fluctuation and of course the dividends received.

Wednesday, May 15, 2013

Recent Option Transaction

Yesterday the markets continued their run higher bringing along Halliburton (HAL), my employer and therefore source of ESPP shares along with it.  I'm still way overweight my company's stock and with another 198 shares hitting long-term capital gains treatment on January 1, 2014 I decided to sell a long-term call to go along with it.  I'm hoping to get a chance to use this as more of a trading vehicle to try and juice the option premiums that I receive but if they get called away that's fine by me as well.  

Tuesday, May 14, 2013

Income Update - April 2013

Another month has rolled by and it's been just an amazing start to the year.  My income has been higher than average every month so far this year, although June's will take a dip.  April was a pretty standard month with nothing really out of the ordinary so expenses stuck right in line with where I want them to be.  My minimum expenses for the month came in at $1,361.56 which brought my average minimum expenses down to $1,370.09.  My goal when I started the year was to get these expenses to average under $1,400 per month, so I'm on track for that.  My total expenses did creep back higher than I'd like but not by too extreme of an amount.  I spent a total of $1,554.60 in April, which raised my average total monthly outlay to $1,522.89.  I'm still okay with this number although there's still things I want to focus more on.

My food budget still seems pretty high considering I'm paying for myself only for most of the month.  Groceries came in under budget but the restaurants hurt my overall food budget.  Both of these I want to work more on lowering the expenses.  Overall I still came in under budget by $20.46, so there's nothing much to worry about and just some extra attention to be paid.  Cooking for myself while away at the rig is the biggest issue for my grocery budget.  I tend to go for convenience after working because the cooking equipment is different from rig to rig and usually mediocre at best.  I really hate having to learn whether the oven/stove cooks higher or lower than normal every time that I change rigs and it's a huge pain to me.  I love cooking though so I just need to quit being lazy and do it already.

Monday, May 13, 2013

The Trend is Your Friend

Hey Passive Income Pursuit readers! I’m Marvin from Brick By Brick Investing, a blog where I teach the average Joe about investing and how to secure financial freedom by building passive income through the stock market. Quick thanks and shout out to Jonathan for allowing me to grab your attention for a brief moment. Let’s get right to it!

When it comes to investing there are two separate camps, fundamental analysis and technical analysis. When you conduct fundamental analysis you establish a value to a company based on assessing its intrinsic value. While technical analysis involves reading chart patterns to determine bullish or bearish patterns.

You will see or hear some investors swear up and down that one camp is better than the other. Take Warren Buffet for example, I’m not friends with Mr. B but I would imagine he scoffs at the idea of technical analysis. While a technical analyst could care less about the name of the company or what type business it conducts. They simply want to see the chart and remain as unattached as possible.

Saturday, May 11, 2013

Weekly Roundup - May 11, 2013

This has been a crazy week.  Getting my mom out of the hospital and back home, followed by getting her healthy again took up most of the time from Saturday until Tuesday.  Since then it's been relatively quiet around here until yesterday a little after noon.  I was hoping it would be quiet as far as work was concerned but I got a phone call saying to be ready to possibly head out  Friday night.  No bueno!  I was really looking forward to being home through the weekend since I hadn't received a call yet, but that's what I get for thinking that might happen.  There's still a chance that I didn't have to leave yesterday, so I'll update y'all sometime this morning.

In other news I did loosen up the purse strings this past week and bought 4 books.  Ooops!  I never should have walked into Half Price Books or gone to their website.  I purchased Buffetology, The Single Best Investment, The Ultimate Dividend Playbook, and Options as a Strategic Investment for an average cost of $8.48 per book.  Not bad considering it would have be over $100 if I purchased all of them new through Amazon or Barnes & Noble.  I've never read any books on dividend growth investing and was hoping to find these at the Half Price Books that's near my house.  Well that never happened so it was time to just go on and order some.  I'm looking forward to getting a chance to read through all of them and will share my findings.

Friday, May 10, 2013

Recent Option Transaction

I went ahead and sold another put option on Cisco (CSCO) this morning.  This time it was a $21 strike expiring next Friday on May 18th.  I sold the put for $0.55 and after commission and fees received $47.01 in option premium.  Cisco was trading around $20.95 at the time of sale.

Thursday, May 9, 2013

Recent Buy

I'm reporting a purchase from Tuesday, May 7th where I picked up 40 shares of Microsoft (MSFT).  I was actually heading to my brokerage account to try and cancel the order because I felt I was being a bit hasty in the purchase but by the time I had logged in the purchase had gone through.  I'm still happy with the purchase although I think I could have picked up the shares for less.  Microsoft is a dividend contender with 10 years of increases in the books.  The generate boatloads of free cash flow and I don't see that changing anytime soon.

Tuesday, May 7, 2013

2 Buys and 2 Option Transactions

I've been missing from the blog world for most of the last 2 weeks due to our trip to Nashville and then once I got home my mom needed to be taken to the emergency room and was then admitted to the hospital.  My mom's since been released and is back home taking it easy.  So everything's back to normal.  Unfortunately I'll be heading back to work in the next few days which is a pain.  Despite having my mom in the hospital it was great to be off for just over 2 weeks.  I can't wait until I can reach financial independence and can then be home all the time, spending time with family and doing what I want to do.

Since I was absent from the blogosphere, I have one option announcement from last week as well as an option trade from today and 2 buys from today as well.  Now on to the moves.

Friday, May 3, 2013

Recent Option Transaction

I'm finally getting a chance to write about the put option I tweeted about on Lorillard that I had sold on Wednesday, May 1st.  The markets continue to be a bit overheated so I've been focusing a bit more on selling puts in order to have some return on my cash other than the piddly interest rate that's offered through my brokerage.  Although I haven't tried to get fully invested because I'm hopeful the markets will finally have that elusive pull back, of course only time will tell on that one.

Wednesday, May 1, 2013

Dividend Update - April 2013

With the books closed on April it's time for another installment of my favorite monthly update, the dividend update.  April was far from setting a personal record for dividends received but it was still well up over January 2013 and April 2012 more than tripling both of those monthly totals.  Of course, April 2012 was the near the beginning of my dividend growth investing process and January 2013 had less companies than normal pay out due to accelerating their payments to avoid possible tax hikes.  It's great to see the dividend amounts steadily increase.