Two New CEF Purchases

Buying in my Wells Fargo account.

music selection:  “Der Kommisar” — After The Fire

I stopped out of several names in my Wells taxable account. I had 16k in cash in checking as a result and decided today was a good day to deploy the amount over 10k. To that end, I bought a pair of closed-end funds that I think are yield rich and have a history of maintaining distributions. They are both a little beaten up right now and thus attractively priced.

First is Calamos Convertible Opportunities and Income Fund (CHI). I purchased 445 shares at 7.64. Against the closing NAV of 8.66, I am getting a 12.9% discount. The indicated yield is 12.58% and it is a monthly payer. This purchase adds 427 in annual passive income or 35.60 a month. Every little bit helps right now

Next is BlackRock Multi-Sector Income Trust’s (BIT). I bought 295 shares of this closed-end fund at 11.51 a piece. Against the closing NAV of 13.54, my discount is a hair over 15%. The indicated yield is 12.90% and it is another monthly payer. I pick up 438 in annual passive income or 36.49 a month.

My new passive income across all taxable accounts is 13,195. I am withdrawing 18,000 and need to earn almost 5 thousand in options income to remain sustainable. Yesterday’s proceeds on NLY puts was half that at 2,595. I also hope to get assigned on my 5 and 4.5 puts which would yield an additional 10,500 in passive income a year.  Add in some covered calls and I *should* be able to stay retired without work.

I plan to find work anyway. It will be some mix of contract assignments (where I would expect to make 35-50 per hour or non-profit work, where I’d expect to make about 35k a year. Either will be sufficient to let me build balances back up.

Devour your prey raptors!

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