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Income Virtual Portfolio – Cashing it in for an Early Retirement!

What a crazy couple of weeks.

Ka-ching is the word though as we did NOTHING – as planned back on the 18th, in our last update - as we expected the market to go down then up.  On Friday, we took our short puts off the table as we expect there is a better than average possibility that we go back down again between now and expirations (15th), so we took our short-term winners off the table.  The only move we did execute in the past two weeks, other than taking our virtual money and running, was the sale of 10 FCX July $47 puts for $1.21 ($1,120) on the 24th and those cashed out yesterday at .13, up $1,080 two weeks early so of course we take it off the table!  

Our other short July puts that were cashed out were:  

  • 20 short GLW Aug $20 calls at $1.30, out at .20 – up $2,200
  • 20 XLF July $15 puts sold for .50, out at .06 – up $880
  • 10 INTC July $22 puts sold for $1.05, out at .15 – up $900
  • 5 BA July $75 puts sold for $2.50, out at $1.40 – up $450
  • 5 DE July $77.50 puts sold for net .67, out at .13 – up $270
  • 50 IYR Aug $55 puts sold for .53, out at .38 – up $1,500 
  • 10 FCX July $47 puts sold at $1.21, out at .13 – up $1,080

So that $7,280 was added to the $17,054 we have already cashed out as well as the $4,000 we withdrew in anticipated profits on two of our trades PLUS we got our dividends on NYL ($1,950) and AGNC ($2,800) for a total of $33,084 collected in just 4 months (100% ahead of goal) and we’re STILL 70% in cash!  We’ve been waiting for a real dip to deploy more cash in our virtual $500,000 virtual portfolio and we haven’t got it yet.  Meanwhile, we keep selling puts in stocks we’d REALLY like to own if they come down to our strike price.

As I said in the last update and as we teach at a much faster rate in our $25K (now $50K) Virtual Portfolio, we have a huge advantage when we sell puts in stocks we REALLY want to own as we can ride out the down cycles, as we did though the last update, because the "worst case" scenario is that we end up owning a stock we REALLY wanted to buy at a price that is cheaper than we originally wanted to buy it for.  Either we get our cheap stocks or, as above, we get our cash!  Cash is nice too, isn’t it?  

Even our HORRIBLE RIMM short puts are coming back a little and we’re not too psyched about owning 1,500 shares at net $26.78 in January – it sure beats our original bet of owning 500 shares at net $33.35 with RIMM now at $28.93.  That’s the power of scaling into positions, you can take a 20% hit on a stock, even a 40% hit – and turn it to your advantage!  Our remaining open short puts are as follows.  

  • 10 KFT Jan $30 puts sold for $1.60 ($1,600), now .43 (up $1,170)
  • 10 EXC Jan $37.50 puts sold for $2.20 ($2,200), now .85 (up $1,350)
  • 10 HCBK Jan $10 puts sold for $1.50 ($1,500), now $2 (down $500)
  • 10 GE 2013 $17.50 puts sold for $2.10 ($4,200), now $2 (up $100) 
  • 10 HPQ 2012 $35 puts sold for $2.90 ($2,900), now $2 (up $900) 
  • 10 CCJ Jan $25 puts sold for net $1.25 ($1,250), now $2.30 (down $1,050)
  • 5 RIMM Jan $35 puts sold for net $1.65 ($825),now $8 (down $3,175)
  • 10 RIMM Jan $27.50 puts, sold for $4 ($4,000), still $3.35 (up $650) 

So, even with the RIMM disaster (and RIMM is still over our net basis so it’s all just premium, PAPER losses so far), our net on the short put plays is a net loss of $555 against our $33,084 of REALIZED gains.  Keep in mind this is our low-touch virtual portfolio, we’re mostly just letting things play out because SELLING premium puts time on your side and one thing retirees have on their side is time – so you can go play golf while the market flip flops up and down and we come back once every couple of weeks and make our adjustments and that’s that.  

LET TIME DO YOUR WORK FOR YOU – that’s what being the house is all about and what our "Man Who Planted Trees" strategy is all about.  You don’t have to trade like a maniac to make good money in the markets, you just have to trade consistently, over the long-term with solid, attainable goals.  The man in the story doesn’t always do the same thing, does he – he adapts his strategy as conditions change over time but he just keeps planting.  What have you done today that will make you money tomorrow?  

While we wait for FRUITION (very apt in this metaphorical case), we take pokes at stocks we REALLY want to own at discounted prices by selling puts. That’s pretty much it for the strategy – it’s not all that complicated, mainly it’s just a matter of getting used to the rhythm of the monthly, quarterly and yearly adjustments over time. Which brings us to our remaining positions starting first with our hedges:

 

  • 100 IYR Jan $50 puts at net $1.70 ($17,000), now $1.32 (down $3,800)  
  • 50 DIA March 2012 $110 puts at $4.15, now $3.15 (down $5,000)

 

That’s a very big swing on our hedges, that were up $7,250 last time and that gives us a nice benchmark as the Dow was 600 points lower (5%) at our last update so our hedges give us about $15,000 worth of protection on a 5% drop in the Dow, which works out fine because the paper losses on our short puts were $10,190 last time and now we cashed in our short-term winners and have a flat set of remaining puts in which we stand to collect $18,475 if the market stays strong over the longer-term.  That’s why we didn’t want to offset our DIA’s – it was just too unpredictable and, when in doubt, better to be protected – we have many, many months in which to sell offsets.  If we don’t head down next week, I’m fairly sure we will go with partial covers to pay for roll-ups on our long puts.  

 

We don’t really want to be up or down, we just want to collect our premiums and our dividends – which brings us to our Dividend Positions and Spreads:

  • 3,000 NLY 2013 $12.50/15 buy/write at net $11.26/13.15 (only 15 puts sold), now $18.20 –  No cash taken.  .62 dividend expected 9/30 ($1,860)
  • 2,000 AGNC Sept $28 covered at net $27.21, now $29.60 – $2,200 withdrawn.  $1.40 dividend expected 9/30 ($2,800). 
  • 3,000 FTR 2013 buy/write at net $5.69/6.60, now $8.20  - $1,800 withdrawn.  .19 dividend expected 9/30 ($570)
  • 20 GLW 2013 $ 25 calls at $1.65 ($3,300), now .90  (up $1,500)
  • 20 GLW 2013 $17.50 puts sold for $2.40 (-4,800), now $2.40 (even) 
  • 1,000 CSCO 2013 $17.50 buy/write at net $11.92/14.71, now $15.86 – .06 dividend expected 7/15 ($60) 
  • 1,000 HCBK Jan $7.50 buy/write at net $5.78/7.39, now $8.25 – .08 dividend expected 8/30 ($80)
  • 2,000 SKX Jan $14 buy/write at net $9.75/11.88, now $14.69

 

Isn’t this section nice and relaxing?  It’s nice and relaxing for me to review.  NLY – on track, AGNC – on track, FTR – on track, GLW – on track…  We have short GLW 2013 $17.50 puts we sold for $4,800, we collected net $2,200 for the Aug calls (cashed in now) and we sold the 2013 $25 calls for another $1,660 so, IF 2,000 shares of GLW are assigned to us at $17.50 or less, we will have spent net $8,840 ($4.42/share) to own them.  Isn’t that nice?  THIS is how you buy a stock!  

In just 2 months, we knocked 75% off the purchase price if it’s assigned to us.  On the upside, if we cover at $22.50 ($45,000), we still have the $8,660 we collected and, if we are called away at $25, that’s another $5,000 in profits for net $13,660 potential profit on net $31,340 laid out (43% in 18 months and we haven’t laid out the $45,000 yet!).  

So here we are at the beginning of month 4 with $33,084 already in the bank (our goal was/is to generate $4,000 in monthly income without touching our principal) and our dividend collections alone should carry us through to our $48,000 goal for the year but that doesn’t mean we can’t make a little fun money over the next 6 months.  We’re only using about $200,000 of our $1M worth of margined buying power and, hopefully, I haven’t been too conservative in not taking more advantage of the small dip we did get but there’s always going to be something on sale and we’ll just keep selling puts while we wait to see who gets cheap enough for us to convert from a short put to a buy/write because each of those buy/writes is one of our trees taking root and those trees can bear fruit for us for the rest of our lives.  

 


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  1. yodi

    Phil hi hope you are enjoying your 4th today.
    Looking at the above on paper the 500k portfolio is very pacient. I must say all my trees of AGNC and NLY have been riped out. I managed to buy some stock of NLY but mainly sold puts on both stocks. HCBK you got me as a non believer. Same with SKX to me a dead loss as their claim on advertising is not true losing weight by walking with their shoes please!. The rest, I did not enter some of the recommendation with the full amount, have learned my lesson with HOV and BAC and C. So some of the trees are growing some missing a lot of water. Saludos

  2. tchayipov

     Phil
    I had the same problem with AGNC and NLY – they were called away and if buy them back, short calls was out of premium.
    is it better to sell ATM calls and hedge them with TBT (how I understand income of both companies highly depends of interest rate)
    what do you think about Real Estate companies who pay monthly dividends (O) here we can sell ITM calls without much risk to be called away because monthly dividends are pretty small

  3. petronick

    Hi Phil,
    If I wanted to start following this income portfolio from now, then would you recommend to reestablish all current position in your portfolio right now? If not all then please recommend which ones?
    Below are all open positions from your post.

    10 KFT Jan $30 puts sold for $1.60 ($1,600), now .43 (up $1,170)
    10 EXC Jan $37.50 puts sold for $2.20 ($2,200), now .85 (up $1,350)
    10 HCBK Jan $10 puts sold for $1.50 ($1,500), now $2 (down $500)
    10 GE 2013 $17.50 puts sold for $2.10 ($4,200), now $2 (up $100) 
    10 HPQ 2012 $35 puts sold for $2.90 ($2,900), now $2 (up $900) 
    10 CCJ Jan $25 puts sold for net $1.25 ($1,250), now $2.30 (down $1,050)
    5 RIMM Jan $35 puts sold for net $1.65 ($825),now $8 (down $3,175)
    10 RIMM Jan $27.50 puts, sold for $4 ($4,000), still $3.35 (up $650)

    100 IYR Jan $50 puts at net $1.70 ($17,000), now $1.32 (down $3,800)  
    50 DIA March 2012 $110 puts at $4.15, now $3.15 (down $5,000)

    3,000 NLY 2013 $12.50/15 buy/write at net $11.26/13.15 (only 15 puts sold), now $18.20 –  No cash taken.  .62 dividend expected 9/30 ($1,860)
    2,000 AGNC Sept $28 covered at net $27.21, now $29.60 – $2,200 withdrawn.  $1.40 dividend expected 9/30 ($2,800). 
    3,000 FTR 2013 buy/write at net $5.69/6.60, now $8.20  - $1,800 withdrawn.  .19 dividend expected 9/30 ($570)
    20 GLW 2013 $ 25 calls at $1.65 ($3,300), now .90  (up $1,500)
    20 GLW 2013 $17.50 puts sold for $2.40 (-4,800), now $2.40 (even) 
    1,000 CSCO 2013 $17.50 buy/write at net $11.92/14.71, now $15.86 – .06 dividend expected 7/15 ($60) 
    1,000 HCBK Jan $7.50 buy/write at net $5.78/7.39, now $8.25 – .08 dividend expected 8/30 ($80)
    2,000 SKX Jan $14 buy/write at net $9.75/11.88, now $14.69

  4. revtodd64

     Phil,
    I love this portfolio.  While I don’t have the cash to follow it, I have been paper trading it in anticipation of the day that I do.  (When my book sells and my Mom cashes in the Iowa farmland, yada, yada, yada.)  You need hope, right?  I would like to know more about selecting puts to sell.  It is increasingly becoming a major strategy and my best money-maker in my margin account.  No rush, maybe an article down the road on a quiet summer weekend.  Thanks for the amazing work you do and happy 4th of July.  I’m heading out for a walk here.  (My wife’s picture.)

  5. yodi

    tchayipov
    Re. O I do hold this stock as well not such great div as the other two. The problem with this one is the calls have very little premium. I have sold the Dec 35 c for .70cents.

  6. tchayipov

     yodi / O
    I sold Dec.30s calls just with 0.2 premium more for protection than for additional income

  7. Phil

    AGNC/Yodi – The key with those stocks is to just make sure you are the owner of record on dividend day.  If you get called away, then you have to buy the stock back right away or, you could actually buy another round that day, uncovered, and you’ll get your dividend on 1x, even if the other is called away.  Also, always keep in mind the best time to buy into AGNC or NLY is right after they go ex-dividend, as they get that big dip but usually recover quickly so you can buy in, wait a bit and then sell calls at a higher strike.  On HCBK, I have a hard time considering that a "dead loss" when it’s at $7.25 and we get called away with full profit at $7.50 but, if you do not believe in them, don’t keep them, you can get out about even and that’s that.  You should never keep a stock you have no faith in – it leads to poor decisions.  

    TBT/Tcha – I think that introduces a needless complication.  Let’s look at AGNC, for example – they are at $29.60 now, flying up from $28.31 right after paying out $1.40 in 6/21.  Look at the long-term chart.  They paid dividends 3/21, 12/29, 9/24/10, 6/28/10, 3/29/10.  It’s the same pattern over and over:  A run-up into ex-dividends, $1.40+ drop in the stock over the next couple of days, then they recover back to where they were BEFORE the run-up.  So it’s not that hard to time your re-entries well or the sales of the puts and calls but YOU HAVE TO PRACTICE FOR MORE THEN ONE QUARTER!  I am very, very sorry that everything isn’t handed out on a silver platter and tied up with a bow in a pretty box but they don’t just hand out well-protected 18% dividends without there being a bit of work on your part (and not you in particular, Tcha, but this is a general thing for people with similar issues).  

    Look at a 5-year chart of AGNC, especially since mid-2009 – is this not a stock you WANT to own with an 18% dividend?  At $29.60, you can sell Jan $29 calls for $1.20, which is a .60 dividend, even if called away at $29 AND you can sell the Jan $27 puts for $1.60, because who doesn’t want to buy the stock back for net $25.40?  So you buy the stock for $29.60 (although high in the channel at the moment), sell the Jan $27 puts and $29 calls for $2.80 for net $26.80 and, if you are called away at $29, then we assume the puts expire worthless and you make $3.20 (12%) in 6 months – WITHOUT collecting a dividend.  Worst case is the stock drops and you DON’T get called away and you do collect $2.80 in dividends and you get assigned another round at $27 but the extra $2.80 drops your basis to $22.60 plus another round at $27 for net $24.80 on 2x.  The only thing you really have to worry about is if they are going to drop the dividend, which would tank the stock without paying you but, otherwise, you are planting a tree that can pay you nicely for the rest of your life.  

    O/Tcha – They only pay 5% and the stock goes up and down 5% pretty wildly.  They are not very cheap so I’d rather buy, for example, FTR, who pay a 9% dividend at $8.20 and sell the 2013 $7.50 puts and calls for $2.15 for net $6.05/6.78 and, if you want to generate a monthly income, you can buy 50% more stock (1.5x) that is uncovered, which would drive your net to $6.77/7.25 – still very nice and, of course, there’s the 9% dividend on the whole lot – AND you can sell 1/2x the Aug $8 calls for .40, which lowers your basis on 1/2 x to $7.80 and, even if called away, .20 is still a 2.5% MONTHLY dividend that you pay yourself (30% a year) on 1/3 or ANOTHER 10% on the full 1.5x position.  

    Starting/Petronick – I don’t think you should get hung up on replicating positions.  Yes, if they are still available for about the same price or better, then I still like them but there’s no need to chase – something is bound to go on sale in a month or so and this is a LONG-TERM portfolio and we will find plenty of short put plays in any given month.  

    Betting the farm (literally)/Rev – It’s not very complicated.  When a stock goes down and I see a price where I REALLY think they make a good initial entry and I think the premium being paid on the puts is reasonable – then I call it a trade idea.  To be included in this Portfolio, though, it also has to have good long-term support and a clear path to generating an income so I’m looking for the ability to sell calls on a regular basis and also looking for a stock I won’t be upset to double down on if the markets drop 20% or more.  Short puts make money consistently simply because you are SELLING premium.  If you consistently sell premium, you have an excellent chance of winning.  

    I don’t know why that is hard to convey to people because it’s pretty much the whole point to options – you can be the gambler or you can be the House.  The gambler may get the occasional big win and get a free suite for a couple of nights but the House owns the suite and a hundred more just like it plus they have a vault that is crammed full of money because they PATIENTLY, HAPPILY take those small-percentage, high-probability wins – over and over and over again.  They don’t care if any individual player (your putter or caller) wins or loses – as long as they are willing to come back and play again – statistics show they will lose over time.  Not complicated at all….

  8. yodi

    Phil I share your point on NLY and AGNC but with HCBK I am the proud owner  by selling the 12.5p of Jan 12 in Jan 11 for 2.08 now 4.40. As I said before on paper these trades always look better as paper is very patient.

  9. Phil

    Gotta take this opportunity to sell 10 TBT Aug $32 puts for $1.10 in the $25KP and 20 in the Income Portfolio.   

    Submitted on 2011/07/12 at 12:12 pm

    That being said, how can you not love WFR at $7.50, selling the 2013 $7.50 puts and calls for $3.65 for net $3.85/5.67 and, since you make $3.65 at $7.50, you can also sell the Aug $8 calls for .32.  Let’s call that 5,000 in the Income Portfolio (net $18,250) plus the short sell of 50 calls at .32 for $1,600.  

    Income Portfolio/Hextra – Patience!  We enter new trades from time to time but we WAIT PATIENTLY for very nice opportunities (we added WFR yesterday).  It’s a LONG-TERM portfolio that is not likely to have more than 20 positions max so figure 5 major additions or subtractions per quarter but plenty of shorter-term put selling WHEN IT’S A GOOD DEAL – which it isn’t at the moment with this big run-up.  Any of the above short-put offsets would be appropriate for the Income Portfolio as they are picked on the same principle. 

    Submitted on 2011/07/15 at 3:58 am

    I like IMAX long-term and they got cheap at $28 and we have the Harry Potter movie this weekend which should be the biggest IMAX film ever.  The Aug $27/28 bull call spread is .55 and pays 81% if the stock just holds $28 for the month.  4 of these calls can be offset with the sale of one Jan $25 puts at $2.40, which has about a $5 margin requirement (after using the cash for the spread).  Let’s put 10 of these into the income portfolio, which will be:

    • Selling 10 IMAX Jan $25 puts for $2.40 ($2,400)
    • Buying 40 IMAX Aug $27/28 bull call spreads at .55 ($2,200)

    So that’s a net credit of $200 being the worst case scenario if IMAX holds $25 through Jan expirations and, since we’re happy to enter 1,000 at net $24.80 (with more hedges, of course!), this is a nice play for that portfolio!  

    Submitted on 2011/07/22 at 1:36 pm

    Speaking of bargains, SONC screwed up an aggressive expansion plan in 2008 and has never been forgiven.  They are a great chain with 3,500 stores (too big too fast) vs. CMG’s 1,100.  SONC dropped just 5% to the bottom line last year but that’s because they were stupid and spent their money on growing the business rather than buying back their stock to make their profits look good.  In fact, SONC was so crazy as to SELL $2.5Bn worth of stock over the last 3 years so they could outbuild CMG 5:1 and buy up all the cheap, prime real estate that was laying around.  They also paid down 30% of their debt but changing over to a franchise system has cost them revenues (but will pay off later, hopefully).  So it’s a tale of a company that invests in the future vs. a company that invests in making investors think they are growing.  I like SONC, thanks and you can buy them for $11.05 and sell the March $10 puts for $2 and the $12.50 puts for $2.10 for net $6.95/9.72, which is aggressive but pays 79% if they hit $12.50 by March so let’s buy 2,000 in the Income Portfolio!  

    Submitted on 2011/07/25 at 10:49 am

    IMAX/Dflam – Got a big downgrade today and people are bailing hard so good time to roll the Aug $27 calls ($1.30) to the Dec $28s ($2.80) for $1.50 to set up for a longer-term trade.  Also on IMAX – some damned fool is buying the 2013 $22.50 puts for $4.90 so let’s sell 10 of those to them in the Income Portfolio for $4,900.  

  10. Phil

    Selling 50 IYR Aug $60 puts for $1.24 in Income Portfolio (1/2 cover to our longs).   

    Volume is not very high – this is a retail panic so far.  If you have short positions, strongly consider put tight stops on them (this includes the $25KP and Income Portfolio) as they put plenty of cash in your pocket and we can always find another layer of shorts if the RUT can’t hold 775.

    In Income Portfolio:

    • Lets sell 50 DIA Aug $116 puts for $1.10 to cover 50 March $110 puts.  
    • Let’s offer $2 to buy back the NLY 2013 $15 calls and sell the other 15 2013 $15 puts for $2.80
    • Let’s buy back the FTR 2013 $7.50 calls for .60
    • GLW – Rolling 2013 $25 calls (.40) to Jan 2012 $16 calls at $1.30 (net .90).  
    • HCBK – Buying back 2013 $7.50 calls for $1.05

     45M on Dow at 10:45 – about a normal day’s worth of volume so big boys are generally complacent so far.  

    Income Portfolio/Yodi – Thanks, that was NLY where we’re buying back the $15 calls.  The short DIA puts we’re selling were the AUGUST $116 puts.  

    Submitted on 2011/08/01 at 9:41 am

    Let’s be straight about that, all the short-term long, including the ones in the Income Portfolio – are DONE.  This was the pop we hoped for and now it’s done and back to cash!  

    FTR/JBur – thanks for reminding us on buying back the 2013 $7.50 calls for .60 in Income Portfolio. 

  11. Phil

     Submitted on 2011/08/01 at 4:34 pm

    Volume is not very high – this is a retail panic so far.  If you have short positions, strongly consider put tight stops on them (this includes the $25KP and Income Portfolio) as they put plenty of cash in your pocket and we can always find another layer of shorts if the RUT can’t hold 775.

     Income Portfolio: 

    • Let’s cover the 100 IYR Jan $50 puts with 50 Aug $57 puts at $1.05.
    • Let’s cover 50 DIA March $110 puts with 50 Aug $116 puts at $1.40.  

  12. Phil

    Submitted on 2011/08/04 at 2:46 pm 

    LTP/Tcha – What picks are they?  Do you mean in the Income Portfolio?  That one we are waiting for a sell-off to commit more cash.  We haven’t been bullish in ages otherwise. 

    Good attitude LDM.  You’ll notice in the Income Portfolio we’re about 75% cash.  When the markets are this volatile (have been all year) you never want to go below half cash.  It’s pure greed to do otherwise as you have $200K and if you have $100K in cash you STILL have $200K in margin to play with and that’s all you really should be playing with when $200K is all you have because a 5% portfolio loss becomes a 10% REAL MONEY loss if you are fully leveraged at just 2x.  I know it’s tempting to make 2x gains but I always tell people – if you are such a genius trader that you don’t believe you can possibly lose when you are 100% invested, then you should be able to make plenty of money when you are 50% invested. 

    Submitted on 2011/08/05 at 2:08 pm

    IYR/Income Portfolio, Savi – No change as we have 2 weeks and reason to believe we may bounce back.  As it’s a 1/2 cover, I’m not too worried.  

    Submitted on 2011/08/08 at 11:16 am

    VLO/Stock – They were attractive at $25 now they are irresistible at $19.36 – good catch.   In the Income Portfolio, let’s sell 20 VLO Jan $20 puts for $3.05($6,100).  If you want to be more aggressive (not for the income portfolio) you can also buy the Jan $17.50/22.50 bull call spread at $2.10 for a net credit of .95 on the $5 spread.  

    Catching up from 1:50!    

    Rolling callers/Chuck – Depends on the stocks but, if we put in a bottom here, I’d be more inclined to buy them back and wait for a pop.  I’ve been waiting for the Fed to update the Income Portfolio but you’ll see me pontificate on the subject when I get that update done as many of those are buy/writes that have gone down quite a bit.  

    OIH Sept $123 puts can be sold for $6.75 and when’s the last time you’ve seen me bullish on them?   Longer-term, the 2013 $110/130 bull call spread is $10 with a 100% gain at $130, even if you don’t offset it.  The 2013 $100 puts can be sold for $11.50 and then it’s a $1.50 credit on the $20 spread and the worst case is you are a long-term investor in oil services at net $98.50 in Jan 2013.  Let’s do 5 of these in the Income Portfolio!  

    TOS says net margin on the 2013 puts is $5,262.50 and risk is, of course, owning $50,000 worth of OIH at $100ish ($25,000 in margin) – That’s a good portion for a $500K portfolio. 

    Income Portfolio/Burr – My hopeless optimism, plus the idea that it was a low-touch portfolio had me putting off adjustments.  We’re only about 1/3 invested so good opportunity to add longs but scary sell-off in progress now as the Dollar rockets back to 75 and Europe once again falls off a cliff with 2-3% declines since the bullish open.  As you said – ONCE some kind of bottom is in place – we’re still looking for that place.  

    Submitted on 2011/08/11 at 10:42 am

    HOLI/Enni – Poor HOLI –  BP got better treatment!  I love them at $6 but I liked them at $10 too so take it with a grain of salt.  Still, buying the stock for $6 and selling the Jan $7.50 calls for $1.40 and the $5 puts for $1.70 is net $2.90/3.95 so another 33% off before you get a 2x assignment.   I like 30 of these in the Income Portfolio.  

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