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!

Two new CEF purchases

Never miss another opportunity to devour prey!

5 thoughts on “Two new CEF purchases

  • April 1, 2020 at 7:26 pm

    I am familiar with both of those CEFs and I think they are both good ones. The one benefit to brutal markets like this is that you can easily find incredible bargains on CEFs. I love the huge and stable income that can be found if one is a prudent and patient shopper. I plan to add some CEFs myself as I get more money in.

  • April 1, 2020 at 9:48 pm

    That’s some serious yield you locked up buying both CEFs at nice discounts too. I dabbled in the CEFs a while back. Had USA, PTY and a couple others. I like CEFs but not sure that highly levered ones are stable these days. Thanks for sharing.

  • April 7, 2020 at 2:58 am

    CEFs trade at a discount to NAV because that makes up for their high expense ratios. Does the discount widen or stay even during a financial panic? I asked this question a couple years ago and could never find the data.

    Are the deals better now?


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