Thursday, August 18, 2011

"Are You Ready For Some DEFENSE?"

In lieu of today's 500+ point rout, I wanted to update the DITM portfolio in my account:
Of the 22 current positions, 9 are still above water ! Mostly because the rose a bit under QE II, and should rise again by year end.
8 positions (covered calls and short puts) are within 3-4 points of B/E (break even) where I receive maximum return (DITM is a fixed income strategy on the stock market, not hoped for appreciation, which can be done outside of it, such as GOLD).
That leaves 5 stocks down as much as 10 points, BUT I am receiving a much higher dividend % on them while I await their return, as well as milking some option premium.
As much as I hate to make or receive market projections - give me facts, not opinions- the strong position of the US stock market and its appeal from European and other foreign investors make me anticipate a huge rally down the line. At worst, entering DITM positions at this time, for the strong of heart, makes a great deal of sense.
BTW - I just learned that Trader's Press has expressed an interest in selling my books.

No comments:

Post a Comment