Monday, November 14, 2011


As shown in the previous posting, thanks to the recent rally after the downdraft, my small IRA (@$50k) is back on trend via the histogram on my October Schwab statement. As I've mentioned before, although I trade DITM covered calls in most other family accounts, the small IRA is the purest record of DITM, as there are no more annual contributions, nor MRDs (minimum required distributions) from this IRA. It is fully invested.
I looked back 11 years and it is just a few dollars shy of an all time high, versus the DJIA still off 15% from the October 2008 top. Although I did take out $23,500 early in the decade, it was before the DITM was begun, in May of 2009.
The statement shows a YTD (year-to-date) reading of a 9.5% increase, thanks to a rally in October that brought back most of the "under water" positions to parity. Dividends are obviously included in the IRA, although potential profits from the "missing" $23,500 are not.
Considering the Safety Net implicit in the DITM, this return with 2 months to go is quite satisfactory - approximating my "annualized" estimates since its start.
For those readers using DITM for at least a part of their portfolios, here are some suitable candidates ex-dividend in November:
UPS,CVX,CNK,MSFT,NEE,SVU,TAL, AND WHR. Be sure to check the dates for yourself.

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