Comment by phil

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phil
April 17th, 2014 at 11:41 am

Long-Term Portfolio Review (LTP):



All 11 short puts are just fine.  They are all long-term and all on track. EGLE is nice for a new entry as is HOV and RRD we always like – all better prices than we entered if you are looking for new ideas:







• DBA – We're just waiting for our full $4 to be realized.  
• GLL – We're a mile in the money but just showing $3 out of a potential $8 so far.  In reality, I think we could ask for $7 and likely get it but it's very thinly traded and might take a while to fill.  I'd go with asking $22.50 for the $107 puts (which are $20 in the money) and offering $13.50 for the $99 puts (which are $12 in the money).  If either one fills, then we can work out of the other.  Gold moves up and down enough around $1,300 that we might get lucky and fill both ends for more money than we'd get if we wait out the spread.  
• HK – On track
• AAPL – Huge profits on that one but, in context, we're up $15,000+ out of a potential $100,000 so this is only "on track" with AAPL at $520 and 20 months to go.  This is the kind of thing we are protecting with our STP, we ride out the ups and downs and, HOPEFULLY, ultimately we get our big, long-term payoffs.  
• ABX – Love 'em.  Having the rare good fortune to be up on all 3 legs at the moment.  That's because the implied volatility of ABX options has calmed down a bit while our actual position has improved so, even though the calls we sold are closer to the money, it doesn't make up for the premium value they've lost.  
• BRCM – We rolled those calls forward but I forgot to book it.  Now, with BRCM at $30.10, they are expiring about worthless and we'll sell the May $30s for yet another $1.05 in our pocket – fun!  
• CLF – A real yo-yo stock, down for us at the moment. 
• LGF – Also down a bit as Divergent had disappointing sales.  That's show biz – not to worry. 
• LULU – On track
• MSFT – On track
• RIG – Off track a bit and let's take advantage and buy back the short 2016 $50 calls (now $1.45) and we're not going to worry as long as they hold $40 but, if they fail to hold $40, we're going to roll our 2016 $40 calls ($4.10) to the $35 calls ($6.30) for net $2.20 and, HOPEFULLY, it will bounce back and we can sell something else for $2 to cover.  
• SHLD – Kind of confusing with the stock split but we're fine as we also own LE stock with our options.  Not looking to adjust it but figure there's an $8 bump in the price of the stock for our position with LE at $26 (as we own 30 shares of LE for each 100 of SHLD.
• SLW – We just played Silver Futures bullish this morning so of course I still like these.  
• SPY – Will they hold 1,800?  That's our bet here. 
• T – On track, very dull. 

What a nicely diversified set of stocks!  We need F, BAC, JPM maybe GE and some REITS (NLY, AGNC, CIM) and some dividend payers and I'll be happy – look forward to adding some over the next couple of weeks.

Managing a portfolio is like making stew – you have to keep adding things and tasting until you have a good balance but, even while it's cooking, the balance changes and you decide to add something else.  This pot simmers for years!