Made 2 Long Term Moves With T For My Wealth Builder

Wealth Builder, there’s a topic we haven’t spoken about in a while.

I’ve been getting a few email about my Wealth Builder section. My Wealth Builder portfolios have been pulled apart when COVID-19 hit. It was something I felt I had to do at that time. It was a drastic move, but putting my money to work the way I did, I feel, was what I had to do to protect my account. I do not think making moves in my long term investments is something I’ll do often, but these were very different times. I do think my strategy worked because in March my account went down about 35% and today I’m up 45% YTD. That’s an 80% swing!

I do still have position in my Wealth Builder that I didn’t liquidate, and it’s time to get new positions to replace the ones I did sell. I well have the portfolios up very soon. I just have to do the work. There’s a little bit of computer to do.

For you new subscribers my Wealth Builder has 4 portfolios: The 5 Star Trading Portfolio, the Pillar of Strength Portfolio,  the Double Dipping Portfolio and the Stock Alternative Portfolio. You can start reading my Wealth Builder section to get ready for my portfolios which will be up within the week.

Today I made 2 entries into Wealth Builder. I bought 500 shares of AT&T (T) to go into the Double Dipping Portfolio. This portfolio holds stock with great Dividends. T has a dividend of 52¢ quarterly. That’s $2.08 per shares, per year. I just bought the 500 shares at $29.65 per share. A dividend of $2.08 on a $29.65 stock is a 7% Return on Investment (ROI) every year. T has a long history of paying and increasing their dividend. All dividends of the Double Dipping Portfolio will be reinvested for more shares.

The positions in this portfolio are meant to be held long term. These are very strong stocks with high dividends. These stock will only be sold if they discontinue or reduce their dividend. Or they hit their Trailing Stop Loss price.

Buy 500 Shares T @ $29.65

I also bought a position for my Stock Alternative Portfolio. The positions in this portfolio will be LEAPS options. My goal is to have stocks that have 2 year LEAPS options. If 2 year LEAPS are not available they will be 1 year LEAPS options.

Each position will have a 50% Trailing Stop Loss Order placed on them from purchase. All position will be sold when there’s less than 6 months remaining to the options contracts. OR, the Trailing Stop will be changed to a very tight percent, such as 10% or 5%. This will protect our gains against Time Decay.

The position I bought today for the Stock Alternative Portfolio is also with AT&T. I bought 10 contracts of the T 1/21/22 $30 Calls.

Buy to Open 10 T 1/21/22 $30.00 C @ $3.00

This is a LEAPS with the Strike Price of $30 and I paid a $3 premium. The total investment into this position was $3000. Paying a $3 premium for a LEAPS on a very good stock, I feel, is a good investment.  I think both of these positions will do well.

Successful trading,

Steve

The Options Coach