TOTAL CAPITAL IN THE MONEY DOWN 45%
Friday was an exceptional day. I only have a handful of
naked puts that remain in the money as I have slowly
been reducing those naked puts that are in the money. 3
months ago I had $127,821 of naked put options in the
money and at risk of assignment. As of April options
expiry that amount is now reduced to just $69,300. This
is a 45% reduction in exposure to assignment. It is
readily evident how important naked put strategies for
rolling options are. By rolling those naked puts that
were caught in the money, and reducing them on each
roll, it not only releases more capital from possibly
assignment, but also gives the stock time to recover. In
my case the reduction of in the money options was
through a combination of rolling and reducing naked puts
on each roll as well as some stocks recovering and
leaving my once in the money naked put, now out of the
money to expire. This is just one of the many ways in
which
I believe naked puts are superior to covered calls.
TOTAL CAPITAL IN USE DOWN BY 178,000.00 or 27%
NO MARGIN BEING USED AT ALL
Meanwhile in keeping with my strategy of
the
cautious bull with options expiry on Friday more
than 178,000 is left not invested. I currently have a
total of $178,000 plus my profit this year of $35,000
for a total capital of $213,000 for investing purposes.
This leave me with a lot of capital to look for bargains
during the next two weeks.
TOTAL RETURN TO DATE US PORTFOLIO 5.49%
Four months into 2011 and I am up 5.49%. Not quite half way
to the 12% I am looking for this year. Overall I feel
pretty comfortable. I have released a lot of capital for
more investing and we are starting into the last half of
April. With this much cash available and the May to July
weaker period looming there may be lots of opportunity
ahead.
Here's how my US portfolio fared:
On Friday
all of my naked puts on Clorox expired, I
will take it slow with Clorox and here is why.
On Friday my naked
puts expired on KO. But KO has had a nice run up and
looking at the chart I feel it is best to wait.
On Friday my naked puts in XOM expired. I sold another 5
naked puts but
based on the chart XOM may need higher oil prices to
move up.
On Friday my Intel April 19 naked puts expired. I
sold just 5 naked puts for May at 19.00 as I expect
possibly a bit more downside with Intel and a chance for
higher premiums over the next week or so. At $19.00
Intel makes a compelling trade.
JNJ naked puts had to be bought and this time I
rolled them to October. I had calculated whether it was
better to accept the shares or roll them out. The
decision was easy as you can see by my notes. My chart
tells it all. I am looking forward to seeing how this
trade works out.
McDonald's is an easy decision, The chart told me
what naked put to sell for May.
Staying out of Merck for the time being is simple
looking at the chart. I have done incredible well, but
Merck's chart looks poor right now for naked put
selling.
The trade on Microsoft on Friday was excellent. 20 Naked
Puts expired freeing up 49,500 in capital. I then sold 5
contracts for May.
The chart on Microsoft looks just great for more
opportunity ahead.
My Nucor trades continue well. This month all 10
contracts expired, but the chart is anything but
inspiring on Nucor. I sold 5 naked puts in May, and I
will hold back the rest of my capital for a week and see
what develops.
VISA is an exceptional ongoing naked put trade. All my
contracts expired again and I decided to look
back a year on the charts to see if I can pinpoint
support. I sold 5 naked puts on Friday and I am holding
back another 5 naked puts for next week to see where the
stock goes.
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