What a spectacular month we had!
We're starting May off at new highs in both of our paired portfolios. The Short-Term Portfolio finished up 123.9% at $223,925, up $2,535 (1.1%) since our last review 12 days ago. That is FANTASTIC because that's our bearish portfolio which, fortunately, we had adjusted to be not too bearish as the S&P bounced hard off that floor and is now back at the top of the channel.
Because we cashed out our aggressive naked index shorts and retreated to longer-term spreads where we are BEING THE HOUSE - Not the Gambler (our core strategy), the market chop ended up being good for our wrong-way index shorts since it was worse on the calls we sold than the calls we bought. See what a simple strategy this is?
Meanwhile, we went on a shopping spree in the well-protected Long-Term Portfolio, adding 3 new short puts, one new dividend-payer and one new spread for 5 new positions in 3 weeks and the LTP finished the day yesterday up 51.3% at $756,472 and that's up $8,898 (1.2%) in the same 12 days. Making money on both our bullish and bearish portfolio at the same time is quite a feat and our combined total of $980,397 is now up 63.4% from our $600,000 start in late Novemeber of 2013 (17 months).
Also, keep in mind that we went back to mainly CASH!!! so the 1.1% gain is more impressive as we only have 20% of our virtual cash committed (not even 10% of our margin). The LTP, in fact, has $765,815 in cash and -$9,343 in net positions. Most of the gains we've had since cashing out were simply watching our "losing" positions turn back into winners as the Materials Sector cycled back around.
