Friday, 10/20/23, was the monthly options expiration day. We had several different issues expire unexecuted and earned a fair amount of fees without having to buy the underlying issue. We also had a number close below our strike price and we bought the stock on which the put had been written. Those were stocks we wanted to own at the execution price. Because we typically never sell a put more than 90 days into the future we now have only November 17th and December 15th puts outstanding. The businesses we bought on Friday have depleted the cash equivalent funds we had available. By the way, we keep our cash in Schwab’s SNOXX which is a mostly government issue-based mutual fund earning us about 5% with virtually no risk to principal.
We are now about fully invested in Dividend Champions so we will continue our pause on selling puts until we have new cash available. Our new cash typically comes from the proceeds of selling real estate we own.
As we mentioned before the pause doesn’t mean we are not acquiring equities. Remember, we DRIP all our dividends so we are constantly adding new equity to our asset management business. Also, we will continue to sell calls on businesses that are not Dividend Champions or DC Wannabes.
We will keep readers posted on adaptations we make to the basic MYFR strategy.