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Virtual Portfolios Update – 11/18/2012

FAS Money



AAPL Money

Peter's Strangle Portfolio

Income Portfolio


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The CSCO position was 10x, not 30x !
CSCO/QC – Not very good weekly pricing to take advantage of.  Fear of poor earnings has April $16 puts at .95 so I like selling those but mainly I just like CSCO long-term, maybe something like selling 2015 $15 puts for $2.50 and buying the 2015 $15 calls for $3.50 so you're in the $16.93 stock for net $16 and you get all the upside from CSCO for only the cost of the margin on the short puts + $1 cash.  Also, since you don't have a cover on the long $15 calls and you are in the money, you can fearlessly sell short-term calls for income.  In fact, that's such a nice trade, let's add 10 of those to the Income Portfolio – we'll play for good earnings and do a sale after they pop and, if they don't pop, we're happy to DD at lower prices.

Don't know if this comment was intended to roll from 2014 to 2015 existing position, but in this case you have to add only 10, for a max of 20X position.
CSCO/StJ – Oops, that will be messy but I wanted an example of that kind of income play so let's buy back the Jan $14 short calls and roll out to that position in 2015 from the long remaining 2014 $13 calls and short $13 puts that are profitable anyway.

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