I bought Schwab on Friday...Did a covered call the same day

C

Cabin111

Boring investor here...I try to add some income with covered calls. I already own 100 shares.

Bought Schwab at $67.78 (100 shares). I then did a covered call for Jan 23 $72.50...I got $6.75 ($675.) for the call. They also pay about a 1.2% dividend. it has a PE less than 24. One of the boring established leaders in the discount broker industry. Yeah, it has it's problems...And I know they make their money from order flow, I get it. They are also absorbing ETRADE...Which will take awhile.

Some of the reasons I still like this company; It makes money. If Fidelity was not private, I would try to buy some of their stock. I still believe you will have a generation shift of money coming. Grandparents and parents will be dying. Money will move down to younger generations. I just don't think stable adults will want to go with HOOD. I just don't see it. If they had $4,000., they would play with HOOD stocks/options. But, if they receive hundreds of thousand of dollars (insurance, inheritance) they will probably rethink their investment situation.

When interest rates rise, Schwab will make a boatload of money from the float and their bank/money market funds/mutual funds. Patience grasshopper...Patience!!

Lastly here is Yahoo! Finance on HOOD's trading being down. I wonder where their clients went to??

https://finance.yahoo.com/news/robi...n-right-now-says-retail-trader-165941691.html
 
I had wanted to purchase into IBKR a long time ago, but damn. That stock almost never goes on sale and people who buy it hold onto it for dear life, right to their graves. No one likes to sell it, lol.

Unlike like HOOD, which soon droped like a rock after the IPO hype was over with, then goes on a never-ending trainwreck to zero.
 
It has gone from $80 bux to $9 bux a share in less than a year. Most the gains to be made from shorting have already been bled out.

So no, no trades on HOOD right now. I'm just sitting watching the horror-show entertainment while the bag-holders sit and lose sleep every night.
 
Instead of focusing on IBKR you , with your strong opinion on HOOD, should have been short all
the way down.
The_Krakenite said:
I'm just sitting watching the horror-show entertainment while the bag-holders sit and lose sleep every night.
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The_Krakenite said:
Most the gains to be made from shorting have already been bled out.
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Gains have not bled out. If you believe the co. is going to zero, you should be short for a gain of 100%+on short stock and100% plus on puts.
 
Schwab...Good boring industry leader.

The Board of Directors of The Charles Schwab Corporation at its meeting today authorized additional repurchases of the company’s common stock and declared a 2 cent, or 10% increase in the quarterly cash dividend to $0.22 per common share. The dividend is payable August 26, 2022 to stockholders of record as of the close of business on August 12, 2022.

The Share Repurchase Program previously had $1.8 billion of share repurchases remaining under a prior authorization. The Board’s decision today has replaced this authorization with approval to repurchase a total of $15 billion of its common stock. Shares may be repurchased through open market or privately negotiated transactions based on prevailing market conditions. For the quarter ended June 30, 2022 the company had 1.904 billion weighted-average common and common equivalent shares outstanding.

Chairman Charles Schwab commented, "The Board’s decisions regarding the Share Repurchase Program and common stock dividend increase reflect Schwab’s recent financial performance as well as our confidence in the long-term prospects of the company. We see these actions as part of an overall evolution of the Schwab story to include both strong business growth and significant capital return."

Just wondering if the price is up because of the stock buyback announcement (15 billion is quite a bit), or is there a squeeze involved??
 
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Cabin111 said:
Just wondering if the price is up because of the stock buyback announcement (15 billion is quite a bit), or is there a squeeze involved??
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Schwab seems to be throwing a lot of money around as if they have nothing more profitable to do with their cash. I have never been fond of managements that announced stock buybacks instead of just tendering for their stock or preferably pay more in dividends.
To answer your question directly maybe yes to both or to one or maybe for some unknown reason unknown to the public. You are not curious as per your initial post you already wrote a call against your position.
 
zdreg said:
Schwab seems to be throwing a lot of money around as if they have nothing more profitable to do with their cash. I have never been fond of managements that announced stock buybacks instead of just tendering for their stock or preferably pay more in dividends.
To answer your question directly maybe yes to both or to one or maybe for some unknown reason unknown to the public. You are not curious as per your initial post you already wrote a call against your position.
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I'll take the $72.50 and the $6.75 and walk away (also enjoy the bumped up dividend). I'll be happy for the profit and then look elsewhere...
 
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