I may have purchased my last covered call. My use of covered calls is impulsive and I invariably sell the call just in front of a run-up in price. That cost me about 10% short term gains in two holdings recently. I still like cash-covered puts. However, they are a cash management tool in rising markets, not a means to acquire stocks at a discount to current price.
I'm becoming more adept at rebalancing, thanks to that superb tool from Chuck Carnevale called FastGraphs. I'm paying up for the premium version, which allows me to review valuation any time I want. The chart immediately identifies companies whose P/E ratio has risen above historical norms. I did some selective rebalancing, got myself a couple of industrials I had been thinking about as well as raising my yield a bit.
I think I'm prepared for a pull-back. None of my stuff is significantly overvalued except a few that I trimmed. I'm clearly in the issue swapping mode now, rather than the portfolio building mode. It would be wise to start building the bench, so that I have a short list to pull from when it's time to rebalance. I've been pulling from the dividend champion's/challenger/contender lists thus far.
I don't care what the total return guys say; I love those dividends.
I have a new Schwab account with a few shekels in it, will have to go visit and decide what I'm going to do with it.
ciao
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