SHARPE INCOME … Possible Purchases?

Posted on Jul 31 2015 - 7:02am by Sharpe Trade

The original Sharpe Income post and explanation of this project can be found here.

The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.

We continue the discussion from the last entry.


For the purposes of this project, we have been saying of late that we have our eye on a few possible purchases.  We had stated that we were monitoring Union Pacific (UNP) as a possibility.  

No … I’m not looking at buying Union Pacific (UNP).  At least not today.

We had also mentioned back in March the possibility of buying PCY and TLT for capital gains.  And those are the two instruments that I am looking at for a possible purchase today.     

When we look at our published PDF on Monday, for the purposes of this project, to date we have reserved $163.00 to purchase some capital gains instruments.  We don’t have to worry about commissions on either PCY or TLT.  As stated in the original post of this project, we can take advantage of the fact that many brokers offer ETF’s to clients, commission free.  

So here is what I am thinking …

For the Sharpe Income project, I will purchase 1 share of TLT, if TLT hits $122.14 today.  It will be a day order.  If we don’t hit $122.14 today on TLT?  Then there will be no purchase.

For the Sharpe Income project, I will purchase 1 share of PCY, if PCY hits $27.85 today.  It will be a day order.  If we don’t hit $27.85 today on PCY?  Then there will be no purchase.

Am I concerned about a rise in interest rates, slamming TLT lower?  Or … am I worried about further pain to emerging markets, causing PCY to slide even farther?

Not really. I will be purchasing more shares of these ETF’s in the future.  If the prices are lower in the future when I purchase more shares?  Then all the better.  

For the purposes of disclosure?  As previously stated, I already had my own pre-existing personal Fixed Income accounts running.   So in addition to this Sharpe Income account I will be purchasing both TLT and PCY for my own personal accounts as well if the above price parameters are fulfilled.    

The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.

We continue the Sharpe Income project with this next entry.

EDIT:  Purchased 1 TLT at 122.47 through Commission Free ETF Program on 07/31/2015 for the project.  Purchased 1 PCY at 27.88 through Commission Free ETF Program on 07/31/2015 for the project.

2 Comments so far. Feel free to join this conversation.

  1. Anonymous August 1, 2015 at 11:20 am - Reply

    The numbers in the edit section are different from what is in the article. Is this a typo or did you do a different type of order than a limit order?

  2. Dan Shy August 1, 2015 at 6:40 pm - Reply

    I used a stop order, instead of a limit order as I wanted to make sure it triggered and was filled, and wasn’t as concerned about slippage.

    I did get a bit of slippage however, so the fills were slightly different as the stop order triggered, and then filled from that point after activation …

    🙂

    Dan

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