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IRA Portfolio update #4

Welcome to the fouth update of the IRA Virtual Portfolio.  First I am going to summarize the current state of the Portfolio then I will get into all the activity we had during September expiration.  

Profit and Loss – Net of closed positions the portfolio is up a total of $769

Market Commentary – Last expiration I said, "I would like to put a total of $20,000 to work by the end of SEP expiration. If the VIX pops up to around 20 I plan to put about $50,000 total to work." The market didn't quite reach the goal but I did manage to deploy $15,000 of buying power. I still feel the market is too high and expect a correction during October. If the vix pops up to around 20 I still plan to put about $50,000 to work. If a correction doesn't happen I still plan to have a total of $25,000 in buying power put to work by October expiration.  Now on to the activity.

AEM – Agnico Eagle Mines Limited;

  • On 9/10/2013 I sold 1x OCT 27.5 PUT for a credit of $150 to initiate a position.(member chat link)

BTU – Peabody Energy Corporation;

  • The SEP 19 CALL I sold expired worthless.

VLO – Valero Energy Corporation;

  • On 9/20/2013 I rolled the SEP 35 PUT to the OCT 34 PUT for a credit of $44.(member chat link)

FCX – Freeport-McMoRan Copper & Gold Inc;

  • On 9/10/2013 I bought back the SEP 29 PUT for a debit of $5.(member chat link)

X – United States Steel Corp;

  • On 9/10/2013 I bought back the 2x SEP 17 PUT for a debit of $10 total ($5 for each PUT).(member chat link)

Here is a link to the spreadsheet we use to track the portfolio. LINK





IRA Portfolio update #3


Welcome to the third update of the IRA Portfolio. First, I am going to summarize the current state of the IRA Portfolio then I will get into all the activity we had during August expiration. In addition, I want to amend something I said when this portfolio began. I said we expect close to 20% annual returns. However, our returns are greatly dependent on the VIX. The higher the VIX the more our cost basis can be reduced on order entry. Unfortunately the VIX has been hovering around 14 which is historically low. So I am not going to make any predictions about the returns of this portfolio. Lets just do the best we can and see where we are after a year.

Profit and Loss – Net of closed positions we are up a grand total of $384.

Market Commentary – I still feel that the market is much to high and volatility much to low to commit a large portion of the portfolio. However, I do feel that our current exposure of about $5600 is way to low for a 100k portfolio. To remedy that I am going to be looking for places to put some additional money to work. I would like to put a total of $20,000 to work by the end of SEP expiration.  If the VIX pops up to around 20 I plan to put about $50,000 total to work.

ABX – Barrick Gold Corporation

  • On 8/9/2013 we closed out the AUG 16/11 PUT spread we sold. We closed it for a debit of $8.(member chat link)

AAPL – Apple Inc

  • On 8/2/2013 we closed out the AUG 420/370 PUT spread we sold. We closed it for a debit of $5.(member chat link)

BTU – Peabody Energy Corporation

  • On 6/9/2013 we closed out the AUG 16/11 PUT spread we sold. We closed it for a debit of $3.(member chat link)

FCX – Freeport-McMoRan Copper & Gold Inc

  • On 8/6/2013 we decided to add some FCX to the portfolio by selling the SEP 29/24 PUT spread for a credit of $88.(member chat link)

VLO – Valero Energy Corporation
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IRA Portfolio update #2


Welcome to the second update of the IRA Portfolio. First, I am going to summarize the current state of the IRA Portfolio then I will get into the specifics of the specifics of all the activity we had since the last article.

Net of closed positions we are up a grand total of $11. However, our open positions in AAPL, CLF, ABX, and SLW are all profitable and waiting to be closed. Below is the summary of our activity for the last month.

ABX – Barrick Gold Corporation

  • No new trades since the last article.  With ABX trading at 17.82 the AUG 16/11 Put Spread we sold is looking safe.

AAPL – Apple Inc

  • On 7/19 we rolled the JUL 430/380 Put Spread to the AUG 420/370 Put Spread for a credit of $72. (member chat link)

BTU – Peabody Energy Corporation

  • On 7/19 BTU was trading at $16.45 so we had to adjust the 20/15 Put Spread we sold. So, we bought back the short 20 put for a debit of $355 and bought 100 shares of BTU for a debit of $1670. Next we sold 1x SEP 19 CALL for a credit of $38 and sold 1x AUG 16/11 PUT Spread for a credit of $66. This leaves us with 100 shares of BTU at a cost basis of $18.09 per share. (member chat link)

CLF – Cliffs Natural Resources Inc

  • On 7/19 CLF was trading at $17.71 so we had to adjust the 20/15 Put Spread we sold. So, we bought back the short 20 put for a debit of $232 and bought 100 shares of CLF for a debit of $1771. Next we sold the AUG 17/12 PUT Spread for a credit of $85 and sold the AUG $19 CALL for a credit of $60. This leaves us with 100 shares of CLF at a cost basis of $17.58

X – United States Steel Corporation

  • The JUL 17/12 Put Spread we sold expired worthless.

SLW – Silver Wheaton Corporation

  • The AUG 19/14 Put Spread we sold is almost worthless so we will look to close it early next week.

Below is the state of the IRA Portfolio as of 7/28/2013.





IRA Portfolio update #1

Reminder: Craigzooka is available to chat with Members regarding his virtual portfolio performance, comments are found below each post.

Welcome to the first update on the IRA Portfolio. The plan, from here on out, is to do a recap of the portfolio every options expiration. In this recap we will do a review of all the activity in the portfolio for the last month and talk about our plans for the next expiration. We had a decent amount of activity over the last month, so lets get to it!

ABX – Barrick Gold Corporation

  • On 5/21/2013 in, member chat, we said, "ABX has gotten to cheap and the premiums to juicy to ignore any longer. So our first position in the NEW IRA portfolio will be ABX. We are scaling into a $10,000 position so for the first round we will sell a put spread and hope we have a chance to buy the shares even cheaper. The 19-14 put spread in JUN is trading for $.80 and the 19-14 in JUL is trading for $1.09. I don't think the extra $.29 is worth missing the opportunity to potentially sell JUN for $.80 and then JUL for another $.80. So our first trade will be selling 1x the 19-14 put spread in JUN for a $80 credit."
  • Our first trade went spectacularly and on 6/6/2013 the short 19 PUT was trading at $13. There was no reason to be greedy and risk the $67 profit to make $13 more so we bought back our short 19 PUT for $13 and booked our first winner ( member chat link ).
  • When we first initiated the trade we were ready and willing to buy more if it got cheaper. By 6/21/2013 ABX had gotten way cheaper so we initiated another position. We sold the 16/11 PUT Spread for a credit of $101. ( member chat link )

HPQ – Hewlett-Packard Company

  • On 5/21/2013, in member chat, we said, "Adding an opening position in HPQ as well. Selling the 21-16 Put spread in JUN for a credit of $104. Once again, we really hope they crash and we will get to pick them up cheaper, but we might as well sell some premium while we wait for that to happen."
  • Two days later HPQ popped after earnings and we were able to close


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The IRA portfolio

Reminder: Craigzooka is available to chat with Members regarding his virtual portfolio performance, comments are found below each post.

By Craigzooka

I am going to share with you how I manage my IRA and the power of reducing your cost basis.  My goal each year is a 20% return in my IRA.  Sometimes I make it and sometimes I don't, but I believe that all of my success is due to reducing my cost basis.  To illustrate the power of reducing your cost basis here are some trades we did last year.  These trades are taken from an educational portfolio we ran in a paper-trading account for a little more than a year.

  • We bought RIG on 5/15/2012 for $44.13, sold it on 1/18/2013 for $46 but booked a profit of $1,154.
  • We bought MT on 1/4/2012 for $19.24, sold it on 12/21/2012 for $15 but booked a profit of $454.
  • We bought CHK on 1/27/2012 for $21.93, sold it on 10/19/2012 for $18 but booked a profit of $800.50.

We were able to lower our cost basis so much by selling calls and occasionally buying additional stock to lower the basis.  We did this mechanically without thinking about market conditions.  I think we can do better.  For the foreseeable future I am going to paper trade a 100k portfolio using IRA margin rules and track it using a TOS paper trading account.  I am going to detail the strategy below.

Position Sizing 

We don't want one single position to take down the whole portfolio so we are going to risk a maximum of 10k to each stock.  Unless there is a once in a lifetime opportunity, we will not spend more than 10k of cash on any one stock.

Position Entry

We hope to eventually own stock but while we wait lets have someone pay us not to own it.  We will enter positions by selling a put spread.  Should we be put the stock we want it to take up less than 5k of cash, so don't sell too many put spreads to begin with!

Managing Put Spreads

So a put spread we sold is now in the money.  Fantastic!  We wanted to buy the stock cheaper and now they are giving us a chance.  So let them put us the shares and we will begin selling calls…
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Virtual Portfolios Update – 11/18/2012

FAS Money

$25KPA

$25KPM

AAPL Money

Peter's Strangle Portfolio

Income Portfolio





Virtual Portfolios Update – 11/9/2012

 

In order to centralize weekend comments regarding the virtual portfolios, we thought that it would make more sense to write a post outlining the current positions. The portfolios spreadsheet is currently up to date and can be viewed here

Income Portfolio

 
Some stocks in the news this week:
 
RIG - Upgraded to Buy at Argus and The Street Rating.
CSCO - Reports earnings on 11/13.
HPQ - Hit a new 52-week low on Friday.
JRCC - Victim of the election!
SBUX - Upgraded to Buy at Argus
BBY - Buyout offer expected from Richard Schulze. Rumored to be below $24.00. Our net is $18.84.
SHLD - Reports earnings on 11/15.
CLF - Reached an agreement with labor union.
CMG - Reiterated as Buy at The Street Rating.

FAS Money

25KPM

25KPA (High Margin Portfolio)

MoMo Portfolio (managed by lflan)

AAPL Money (High Margin Portfolio)

Strangle Portfolio (Managed by Peter – High Margin Portfolio)





Weekend Virtual Portfolio Update 2/26/2012

My last weekend update is dated from January 30 so after a long hiatus, here is an update of our virtual portfolio. Since the last update, we have closed the AA Money portfolio due to a lack of enthusiasm (and activity) and I have stopped tracking the FAS strangle as the low VIX makes it hard to get rewarded for the risk! But we have added a small $5KP virtual portfolio which does not use any margin.

FAS Money

We have had to recover from a big move up by FAS and a low VIX which keeps option prices low. But the portfolio has gaine about 10% since the last update.

Last update P&L – $5499.00

IWM Money

Not a lot of activity in this portfolio where the main focus is on the large IWM BCS. But the portfolio has grown over 20% since the last update.

Last update P&L – $1998.00

$5KP Portfolio

This is the virtual portfolio that replaced the AA Money portfolio. It does not use margin and we will keep holdings under $5K.

AAPL $50K Portfolio

What is there to say about this portfolio…. $132K of profit in a bit less than 3 months. Unbelievable and great job by lflan!

Last update P&L – $53,205.00

$25KP Portfolio

Comments about this portfolio can be found in Phil’s daily post. I have included only February trades as the list of trade is getting too long to fit in the article.

Last update P&L – (-$5447.00)





Weekend Virtual Portfolio Update 1/30/2012

Here is a quick update of past trades and our current position.

AA Money

No trade this week as we wait for AA to settle. Phil remarked last week that AA seemed overvalued. In the meantime, it looks like we might have to roll our Feb 9 calls. Good thing we sold only 5 of them against our position.

Last week P&L – 310.00

We lost ground last week, but we still have 11 months to sell premium!

FAS Money

Very good week for FAS Money as we benefited from the large amount of premium sold the previous week. We covered most of the shorts in advance of the Fed speech, but sold another set of options on Wednesday after the speech - 2 FAS calls that expired worthless on Friday, 2 FAS put that we are still holding and 2 FAZ put that we bought back for a profit on Friday. A late stick comparable to last week’s almost gave us problems at the end of the day though!

Last week P&L – $4277.00

IWM Money

A decent week in this virtual portfolio. As with FAS Money, we covered most of our short positions before the Fed speech, the difference being that we were more bearish in this portfolio and the early run last week damaged the position. We sold more options after the speech as well – TZA and TNA puts and TNA calls. We showed some small profits on the TNA options but had to roll the TZA puts and the TNA calls at the end of Friday to counter the late stick.

Last week P&L – $1682.00

FAS Strangle Experiment

A decent week even though we stayed away after Wednesday… We benefited from the set of calls sold last Friday when we rolled our position due to a late stick. The market sold off early Monday and we were able to get out with a nice profit. We sold another profitable strangle on Tuesday and that was the extent of our trades last week!

Last week P&L – $10,350.00

Still, we are now up to 50% of PM margin. Not bad in 10 weeks…

AAPL 50K Portfolio

Well AAPL didn’t disappoint in earnings and the portfolio took off… Great job by lflan!

Last week P&L – $33,385.00

$25KP Portfolio

As usual, I’ll let Phil comment this week.





Weekend Virtual Portfolio Update 1/22/2012

Here is the virtual portfolio weekend update. Basically a recap of the positions and some notes about the trades. As usual, I’ll post the previous week’s P&L for comparison. Not the greatest of week in general!

AA Money

Only transaction last week as we bought back the AA Feb 9 puts on Tuesday for close to a 70% profit. The idea is to sell another set of put as soon as we get a chance.

Previous week P&L – $400.00

We lost some ground this week, but we’ll keep on selling premium!

FAS Money

We also lost some ground in this virtual portfolio, but we have sold plenty of premium for the coming week. A little correction would go a long way to help! On Wednesday we sold the FAS Feb 72 puts (already good for 50%), on Thursday we added the Jan4 78 calls and on Friday we had to roll the Jan 78 puts to the Jan 80 puts. We were hoping for these ones to expire worthless on Friday, but a late stick killed that hope.

Previous week P&L – $4372.00

IWM Money

Not the best of week either here… As with the other portfolios we were a tad bearish with more calls sold. On Wednesday we sold the TNA Feb 47 puts (already up 40%) and on Thursday we rolled the TNA Jan 46 calls to the Jan4 49 calls.

Previous week P&L – $2046.00

As with the FAS Money portfolio, plenty of premium sold to get us back on track.

FAS Strangle Experiment

One bad move on Friday almost wiped out the entire week’s profit. There might be 2 lessons learned from that:

1) Every Friday will be different –  the week before, patience was rewarded, this week, a late stick punished it.
2) Better to take the profits when we can.

I also tried to time the entries better and it did help earlier this week but I still need to work on that.

Previous week P&L – $10,190.00

We start the week with over $1 of premium sold. All we need is a move to the downside to make up the loss.

25KP Virtual Portfolio

I’ll let Phil comment any of the trades. Here is a recap of the positions.

The SQQQ Jan calls expired worthless on Friday.

Apple 50k Virtual Portfolio

I’ll let lflan add his…
continue reading





 
 
 

Chart School

A New Look at the Total Return Roller Coaster

Courtesy of Doug Short.

Note from dshort: I received a recent email requesting an update to my Total Return Roller Coaster series. I've now updated the charts below based on monthly data through the March close.

Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles.

Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation?

The purchasing power of your investment has increased to $26,567 for an annualized real return of 19.70%.



...

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Zero Hedge

"Holy Grail" HFT Firm Virtu Questioned By NY AG

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Having the trade record of Bernie Madoff and the braggadocio of a WWF wrestler was just too much for New York Attorney General Eric Schneiderman to ignore. Rigged Market HFT Poster-child, and recent-delayed IPO, Virtu Financial has received a letter of inquiry from the AG's office requesting information about its business. As Bloomberg reports, a person with knowledge of the matter said this week that six high-frequency trading firms have r...



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Insider Scoop

Rovi Announces Sale of MainConcept Businesses

Courtesy of Benzinga.

Related ROVI U.S. Court Of Appeals Sides With Amazon In Rovi Lawsuit Market Wrap For April 8: Markets Bounce Higher As Earnings Season Begins

Rovi Corporation (NASDAQ: ROVI), a global leader in entertainment discovery, announced it has entered into a definitive agreement to sell its DivX and MainConcept businesses. Rovi had previously announced its intent to sell the DivX and MainConcept businesses by the end of the second qua...



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Market Shadows

Canary In the Yen Shaft: $10 trillion JGBs; No Bids!

Two guest authors, David Stockman and long-time contributor John Rubino, write about the current state of Abenomics. 

Canary In the Yen Shaft: $10 trillion JGBs; No Bids!

By  

This one matters a lot. Abenomics was predicated on a lunatic notion—namely, that the economic ills from Japan’s massive debt overhang could be cured by a central bank bond buying spree that was designed to be nearly 3X larger relative to its GDP than that of the Fed. Yet anyone with a modicum of common sense and market...



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Option Review

Wild Ride For Chipotle

Shares in Chipotle Mexican Grill Inc. (Ticker: CMG) opened higher on Thursday morning, rising more than 6.0% to $589.00, after the restaurant operator reported better than expected first-quarter sales ahead of the opening bell. But, the stock began to falter just before lunchtime on concerns the burrito-maker will increase menu prices for the first time in three years. The price of Chipotle’s shares have since fallen into negative territory and currently trade down 3.5% on the session at $532.89 as of 1:50 p.m. ET.

Chart – Shares in Chipotle cool by lunchtime

...

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Phil's Favorites

The Best of TRB 2014 - Investing and Psychology

 

The Best of TRB 2014 – Investing and Psychology

Courtesy of 

This week I’m in Disney World with the family, our first proper vacation all together in years. As such, I’m off the grid and away from computers of any kind (I’m trying to stay married, you guys). But while I’m gone, I’ve left you some stuff to catch up on…

These were the biggest posts – as read and shared by you – during the first quarter of this year. The theme of today’s collection is good investing and understanding the psychological forces at work when we commit capital. No matter how long I’m doing this...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Sabrient

What the Market Wants: Positive News and Stocks at Bargain Prices

Courtesy of David Brown, Sabrient Systems and Gradient Analytics

Last week’s market performance was nasty again, especially for the Small-cap Growth style/cap, down 4%.  Large-caps faired the best, losing only 2.7%.  That’s ugly and today’s market seemed likely to be uglier today with escalating tensions over the weekend in Ukraine. 

But once again, positive economic trumped the beating of the war drums. Retail Sales jumped up 1.1% over a projected 0.8% and last month’s tepid 0.3%, which was revised up to 0.7%.  While autos led, sales were up solidly overall.  Business inventories were about as expected with a positive tone.  Citigroup (C) handily beat estimates to add to the morning’s surprises.  As a result, the market was positive through most of the day, led by the DJI, up 0.91%, and the S&P 500, up 0.82%.  NASDAQ had a less...



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Digital Currencies

Facebook Takes Life Seriously and Moves To Create Its Own Virtual Currency, Increases UltraCoin Valuation Significantly

Courtesy of ZeroHedge. View original post here.

Submitted by Reggie Middleton.

The Financial Times reports:

[Facebook] The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process. 

The authorisation from Ireland’s central bank to become an “e-money” institution would allow ...



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OpTrader

Swing trading portfolio - week of April 14th 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here is the new Stock World Weekly. Please sign in with your user name and password, or sign up for a free trial to Stock World Weekly. Click here. 

Chart by Paul Price.

...

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Promotions

See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



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Pharmboy

Here We Go Again - Pharma & Biotechs 2014

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Ladies and Gentlemen, hobos and tramps,
Cross-eyed mosquitoes, and Bow-legged ants,
I come before you, To stand behind you,
To tell you something, I know nothing about.

And so the circus begins in Union Square, San Francisco for this weeks JP Morgan Healthcare Conference.  Will the momentum from 2013, which carried the S&P Spider Biotech ETF to all time highs, carry on in 2014?  The Biotech ETF beat the S&P by better than 3 points.

As I noted in my previous post, Biotechs Galore - IPOs and More, biotechs were rushing to IPOs so that venture capitalists could unwind their holdings (funds are usually 5-7 years), as well as take advantage of the opportune moment...



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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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