Game Plan

How I am going to navigate going forward.

music selection: “The End Of Heartache” — Killswitch Engage

weigh-in:  207.0 (8.2) – two-week change

Attentive Lizards noted I did not post last Monday. I was a little bit locked up emotionally. I have had a lot of bad news lately. A dear uncle died from lung cancer. The markets savaged my retirement. And the sexy lady Lizard in my life let me go. I couldn’t cope for a few days. I’m on the mend after licking my wounds, however.

As far as trading, I’m still locked out until the 50k I’m transferring from the tIRA to the taxable account clears. That should happen tomorrow or Wednesday. My plans for immediate trading are as follows. Stink bid the Tupperware bond (CUSIP: 899896AC8). It is trading around 60 cents despite being money good (the company gushes free cash flow). Secondly, I really like Annaly Capital Management (NLY) at current prices. I’m tempted to buy a huge slug and restore my passive income that way. I’m finding that the options premiums on it, however, are just about INSANE right now. I’ll watch prices for a few days to make sure the panic selling is over. I think with the Fed committing to “unlimited” MBS purchases, liquidity fears for the mREITS should be muted.  I will write 25,000 in exposure on 5 strike puts and 25,000 more on 4 strike puts. Should those get assigned, I’ll be leveraged but my passive income needs should be met.

Finally, I’m waiting for a peak in COVID-19 cases AND a move in the S&P over the 200 day moving average. That is my signal to start buying VXX long-dated puts again. The ^VIX should return to normalcy soon after the stressor is gone and I should make good money.

One last thing.  I’ve determined I’m probably still “retired” if I convert the rest of my tIRA to taxable. I’m waiting until next year to 1) see if it is necessary 2) do so tax efficiently.

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