Some very quick hits today.
That free money from SpaceX deep in the money calls that we looked at on Saturday is looking a little less free and the options are looking a little less deep after today's close.
Again, I certainly don't know what SPCX will do but the options market doesn't usually give money away.
David Blanchett has a paper out titled The Foundations For A Truly Successful Retirement. It covers the usual suspects in terms of social connections, a few others including that having more money makes for a more enjoyable retirement, go figure. There was one interesting point that we've probably talked about but that Blanchett worded differently that I think is useful regarding annuities or some other way to get lifetime income.
The paper says that both retirement accounts and lifetime income streams are both wealth (read the paper for context) but people are far more emotionally comfortable spending from some sort of lifetime income stream than they are from their retirement account. Yes this makes sense almost to the point of being obvious but it resonates. If some income stream is guaranteed, it's not that you are taking zero risk, it's more like you're not seeing the risk. That's not very tidy intellectually or mathematically but emotionally? Sure why not? I continue to believe there will be ways to annuitize income without annuities as we know them today, we'll see.
Long time readers might recall how involved I used to be with Seeking Alpha. For a while, I had the most followers of their contributors. I was a very early outside contributor. It's possible that I was literally the first outside contributor. I feel like the site sort of evolved into being more of a 10 Stock Picks For Summer! type of publisher. A few years ago, I submitted something to see what the publishing process was like and the feed back was they wanted stock or fund picks. I broke off with them when they edited out a mention of a book I wrote from one of my posts.
Every now and then, I circle back to see if I am missing anything in terms of content quality. I used to poke fun at the dividend zealots that dominated the content and while I don't know if anything dominates the content now, I took a look and found an article on a closed end fund that interests me. I'm not linking to the article but it belied a misunderstanding of many aspects of closed end fund investing and the fund itself. One of the two comments was more useful than the actual article.
Carter Worth, you might recognize his name as a regular on CNBC many years ago (is he still on?), has a new derivative income fund with symbol WRTH. It sells straddles on stocks that have moved 10% in reactions to their earnings. The website shows that other that treasuries, it only has straddles currently on two stocks. It will target an 11-12% distribution which would include about 1/3 of the distribution coming from the T-bills it holds.
It's not obvious to me if it will be able to always maintain the 10% earnings move strategy. What if there aren't any?
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