Tuesday, March 15, 2011


As the NCAA basketball March Madness begins, DITM focuses on the defensive part of the strategy. So far the S&P 500 (SPX) is down 6% from its Feb. 18 closing high. As of today, only 4 of my 17 positions are even under water, let alone in a losing - net of call premium and dividends - position. They are barely below the pre-selling price, so far in no danger of being stopped out.

In a couple weeks I shall update 2011's first Quarter results - should be pretty good.

A couple of Behavioral Finance thoughts: although the market has doubled from its March 2009 low, how many folks got in at the very bottom and sold at the very top?

Also, when I say that DITM protects all but BEAR markets (20% or more), due to the Calls safety net and income, how many got in at the very top and got stopped out at the very bottom, without waiting out the Call premium decay and future dividends? That is the benefit of monthly "laddering", safety as well as steady, monthly income from dividends.

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