Comment by phil

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phil
April 16th, 2014 at 1:52 pm

$25,000 Portfolio ($25KP):  



• USO – We're waiting for the big one.  
• XRT – This is a bonus round on XRT, we're waiting on some retail earnings.  
• GMCR ($97) – Pretty much on track.  

Butterfly Portfolio:  



• BTU – Looks like we'll be rolling the April $16 calls (.80) to the May $16 calls ($1.16) to pocket another .36 ($360) as we already have aggressively bullish short Jan $18 puts.  Hopefully, tomorrow, we can do that roll for more like .40-.45. 
• CZR – May, so we don't care.
• DIS – Exactly in the middle of our zone!  We sold $4,270 worth of puts and calls and now they are $2,250 – so we made $2,020 in one month – very nice.  That's the way these trades work when they are going correctly – whenever we are lucky enough to hit our targets, they are like cash machines.   Over time, with a dozen of these trades working, we will get lucky more and more often.  The Apr short $77.50 calls ($1.30) can be rolled to the May $80 calls ($1.60) for .30 (+300 in our pocket) as we're bullish on DIS into earnings.  The short April $80 puts ($1.55) can be rolled to the May $77.50 puts ($1.70) – just in case we're wrong and, anyway, we still get another $150 for our trouble on that one.  



Income Portfolio:



• CHL – Only China stock I like
• DIS – Love 'em
• FCX – Love 'em
• HOV – Tempting to sell more but let's just say fine.  
• TASR – Love 'em
• AAPL – That's an earnings play we just added, we will sell puts if AAPL goes lower.  If it doesn't, then we'll make lots of money – nothing wrong with that. 
• ABX – Love 'em, good for a new entry. 
• RIG – Love 'em

Not a bad set.  If we can make this much for the next 3 quarters, we may even beat the S&P (assuming it does what it did last year).  We'll be adding plenty of new positions over earnings season when things get too high or too low.