Wednesday, March 16, 2011


As Ronnie Reagan used to say - There you go again. Just as I bought BTI, Brit.Amer Tobacco, a few days later it started tanking - from 82 to74 (9.8%) as the SPX dropped 6% so far. I should have known, having had this happen a year ago with UVV -Univ.Leaf, another tobacco company (can be hazardous to your fiscal health).
I sold way less than my 10% lower Call, the 80-strike, because it was a test of the semi-annual dividend strategy (my bad, not DITM's).
Still, I hang on to it - down 6 points, I locked in 2.6 pts. dividend and 2.2 pts Call, so I'm basically only down 1+ pts., which I'll try to ride out, hoping it'll improve.
So far, of my 17 DITM positions, only 5 now are barely under water, needing no action yet.

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