Skip to main content
No. of Recommendations: 1
This past summer, I bot shares of MGI in about a dozen different purchases. For each trade, I bot X number of shares and sold X number of call options against those shares...all in one transaction. Etrade worked well for that. The options were near term, with only a month or less till expiration,$2 or $3 strike prices. Three or four or five days before expiration, I'd buy those options back, and sell the next ones on the calendar. I've been doing that for awhile. Presently I've got $2, $3, and just a few $4 covered calls, expiring in jan, feb, and may, sold against all my MGI shares.

My returns are all looking to yield 9 to 10%..a little more if someone calls some of my shares away earlier. That works for me. With shares trading now at $5 to $6, I'm not expecting to start any new transactions once my existing ones close out...unless there will be enough premium on the $2 and $3 calls to make it worthwhile.

MGI does not pay a dividend. MGI got my attention from watching all the transactions done at Walmarts, small stores, etc....understanding the need for people to do a lot of under-the-radar cash transactions...MGI's announcment a year go about intending to start their own crypto currency...and the numbers in their quarterly earnings reports.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.