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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…
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Zero Hedge

Frontrunning: December 22

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

  • Police officers' slaying raises pressure on New York mayor (Reuters)
  • People Call for Cooling of Racial Tensions After Murder of NYPD Officers (BBG)
  • The $6.3 Trillion Frenzy That Vanquished Treasury Bears (BBG)
  • China Investigates Possible Stock-Price Manipulation (...


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Phil's Favorites

Maybe Oil Goes to $70 on its Way to $40

Courtesy of Charles Hugh-Smith of OfTwoMinds

A retrace that fills open gaps and kisses the 50-day moving average surprises everyone who was confident oil was heading straight down to $40/barrel.

When the conventional media ordains oil inevitably dropping to $40/barrel, I start looking for something else to happen--like oil going to $70/barrel. There are number of reasons this isn't as farfetched as it might seem at the moment.
  1. The huge gap begging to be filled on the chart of the Energy Select Sector exchange-traded fund XLE and a bunch of other energy-sector stocks and etfs. Gaps like this usually get filled sooner rather than later.
 

2. A bounce back to the 50-day moving average on the WTI oil index around $73 would be unsurprising. As the old sayi...



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Pharmboy

2015 - Biotech Fever

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

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...



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Chart School

Can you make a living trading Springs and UpThrusts?

Courtesy of Read the Ticker.

We tell the truth about trading springs and upthrusts, no holding back!

More from RTT Tv

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net Investing Quote...

..“The market always tells you what to do. It tells you: Get in. Get out. Move your stop. Close out. Stay neutral. Wait for a better chance. All these things the market is continually impressing upon you, and you must get into the frame of mind where you are in reality taking your orders from the action of the market itself — from the tape.”…

Richard D. Wyckoff
.."Markets are constantly in a state of unce...



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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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Insider Scoop

#PreMarket Prep Guest List For The Week Of December 22, 2014

Courtesy of Benzinga.

Brian Kelly, Curtis Erickson and Jerremy Newsome will all be guests on this shortened week of Benzinga's #PreMarket Prep broadcast, sponsored by Nadex.

Be sure to tune in at 8:00 am EST Monday-Friday here to tune in to the exciting show.

Don’t miss our #FedForecast2015 event either!

You can learn more about that here.

Monday, December 22, 8:35 a.m.

Jonathan Corpina (...



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Digital Currencies

Chart o' the Day: Don't "Invest" in Stupid Sh*t

Joshua commented on the QZ article I posted a couple days ago and perfectly summarized the take-home message into an Investing Lesson. 

Chart o’ the Day: Don’t “Invest” in Stupid Sh*t

Courtesy of 

The chart above comes from Matt Phillips at Quartz and is a good reminder of why you shouldn’t invest in s...



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OpTrader

Swing trading portfolio - week of December 15th, 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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Sabrient

Sector Detector: Energy sector rains on bulls' parade, but skies may clear soon

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

Courtesy of Scott Martindale of Sabrient Systems and Gradient Analytics

Stocks have needed a reason to take a breather and pull back in this long-standing ultra-bullish climate, with strong economic data and seasonality providing impressive tailwinds -- and plummeting oil prices certainly have given it to them. But this minor pullback was fully expected and indeed desirable for market health. The future remains bright for the U.S. economy and corporate profits despite the collapse in oil, and now the overbought technical condition has been relieved. While most sectors are gathering fundamental support and our sector rotation model remains bullish, the Energy sector looks fundamentally weak and continues to ran...



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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's this week's Stock World Weekly.

Click here and sign in with your user name and password. 

 

...

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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...



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Market Shadows

Official Moves in the Market Shadows' Virtual Portfolio

By Ilene 

I officially bought 250 shares of EZCH at $18.76 and sold 300 shares of IGT at $17.09 in Market Shadows' Virtual Portfolio yesterday (Fri. 11-21).

Click here for Thursday's post where I was thinking about buying EZCH. After further reading, I decided to add it to the virtual portfolio and to sell IGT and several other stocks, which we'll be saying goodbye to next week.

Notes

1. th...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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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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About Ilene:

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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