A comparison to yesterday's MP with today's will show what often is the case. The market tanks, but our portfolio value remains in tact. This is because we have already taken in our (premium) gains. In some or many cases we established positions a bit more conservately - ITM and in others well they simply went ITM afterwards and are now only pulling back to be ATM (at-the-money). pS
OK just when I am getting to the part where I want to tell it is really nice to be establishing positions and having nearly all of them not turn tail in their oft-times (negatively) volatile ways and force us into using our "stop-loss" methods - we get one that triggered this morning: <b>Thursday, May 8, 2008 9:35 am EST Bought (2) HOV May 12.5 (HOVEB) call option contracts at $0.15 (ask). Sold 200 shares of HOV (Hovnanian Enterprises, Inc. ) at $10.80 (bid).</b> Along that same theme...just when I decide I HAVE to add contracts with rising equity in my C2 funds at about halfway down yesterdays elevator drop - I do - only to have on the very same day the hardest decline in over a month. Fortunately I am still not near being over-leveraged in any way and can only trust what the market is ultimately going to give us. p$ aka gilbert
Here is another trick (although it has bitten me in the you-know-what in the past) <b>Thursday, May 8, 2008 1:15 am EST Bought (1) CSIQ May 25 (GQAEE) call option contract at $6.40 (ask). Sold (1) CSIQ May 30 (GQAEF) call option contracts at $2.70 (bid). RESET Stop Loss: $28.20</b> You see, with the stock price at 30.9 there is still 0.50 in premium left with our original call sell. BUT by buying back and sell the - again May - higher strike contract, more juicy premium (~5.8%) can be received with just 1.4 weeks until expiration with this still ITM position. The only bad is that if for some reason (perhaps inherent and imminent since there is risk implied with the high call option premiums) the position moves to our stop-loss target. . .the fine gains we had would be given back. But I like everything about this stock and it is at an excellent buy point since it is currently breaking out. pS
OK This thread pretty much details it all. You've seen all that I can do. At this juncture we have a very cool equity curve ramping up from the bottom of the Nasdaq correction - with very minor day to day movement - with a 10 stock (high-beta) portfolio. We are now at <b>12.43%</b> and May calls are looking like we are going to very well lock these gains in - turn around and add more Jun to compound up to about 20%. The market trend does come regularly around and we capture it like clockwork. The key point is we have been at this juncture with ease about 3 times in '07 after closing one trend in '06 for about 35% gain in 4 months. Only difference is in '07 the market made a sharp reversal forcing us back to 0%. It was and always will be easy to get in 1-2 months a 7-12% return the key is will the market let us move for another 1-2, 2-3, 3-4, or 4-5 months??? In early stage bull markets (see 2003) it is usually longer. In later stages ('06) it is usually shorter-lived. But with all the wanking around in '07 I know by the feel of things that (barring any major catastrophic global unknown) this will at least yield another 1-2 months and perhaps 3-4. So there you have it. OH! and did I say it is EXTREMELY KEY that you manage exactly like we did with each reversal in '07 to at least breakeven (most times the market wouldn't be so forgiving with late-stage bull market "perma-bulls" and Fed shenanigans and will mostly tank into a Bear Market completely decimating the trader of this high-growth approach AND his/her portfolio. . .never to return) to keep tight rein on small losses getting any larger. So yeah - you've seen it all. I and one (if my trading methodology is strictly adhered to and all nuances trades and market scenarios are experienced) can manage in their sleep these equity curves you've seen at my website these last couple years and the 7 or so before that, to smoothly and with great confidence and extreme ease grow your wealth with covered calls compounding $200,000 into $6,000,000 then to $180,000,000 at a rate on average of about 55% per year. I have shown this. It is clear to see. Easy to do if you know what I do and have shown you. All other attempts with covered calls websites or naked puts or hedge fund can not that I have seen do this. The rest of what I post will be just repetition. pay$ense One day soon I will partner and manage these very returns. But those involved definitely will still likely need blind faith as it takes SOME patience to wait though the flat periods to enjoy the ramp ups and to wait through another flat period or two to enjoy the compounding of the larger account. And even more patience once $10M is 1/5 mine and we have to wait 5 years to grow this to $50M - again less my part. MANY patient years ignoring all the hulla-balloo but well worth it and well contained on the risk side. I will now update the Trading History (see previous two uploaded files for early 2008 trades). Just remember that the right column is simply the cash balance. Negative (in red) means we are a bit on margin and corresponds to the Cash line item in the Model Portfolio. Also at weekend you will see the beautiful update of my performance chart.
Press release came out Wed: RZ to report earnings next Tuesday, 13-May-2008. We do not feel comfortable holding this weak issue through this date. <b>Friday, May 9, 2008 10:15 am EST Bought (2) RZ May 30 (RZEB) call option contracts at $0.20 (ask). Sold 200 shares of RZ (Raser Technologies, Inc.) at $9.15 (bid).</b> Position closed. pS
The Internet-Content group is smoking and this stock is apparently even more attractive thatn GOOG, BIDU and SOHU. Institutions are chomping at the bit so any risk we hope is offset by all of our preventative measures (research): <b>Friday, May 9, 2008 1:40 pm EST Bought 100 shares of JRJC (China Finance Online Co. Ltd.) at $20.55 (ask). Sold (1) JRJC Jun 20 (JQJFD) call option contract at $3.00 (bid). Stop Loss: $17.55</b> FYI I will post a snapshot (portion) of our Covered Call Candidates or watchlist. Regards, Paysense
Let me state the positive and that is this journal represents a great effort by a youthful spirit who wants to make something of themselves. Now the negative, this journal is hard to follow and rather long winded. There are paragraphs and story lines. Im done reading after just a paragraph and quickly close it. My opinion is to start a new journal, but make it less winded and easier to follow.
Thanks Port1385: You know I just reported that pretty much everything (sales pitch-like posts) have been said and done. I am now making an attempt to streamline. Have I done ok since? You see what might seem commonplace and straight-forward to some or many is still "Greek" to the rest. I am simply making sure things are well understood by all. Forgive me. paysense PS This weeks charts (updated tomorrow) will look very nice.