Tuesday, December 20, 2011


Finally, a silver lining. Today's 250+ point rally hopefully marks the beginning of a nice multi-week rise in the markets after recent gloomy news from home and abroad. My oersonal scenario for 2012 (despite the Mayan calendar forecast of Armageddon) is a Bar Bell market with rises in the 1st and last Q, and choppy volatility into the election. This is based on 4-year and decennial cycle norms.
Fully invested now, I plan to lighten up somewhat into the summer, and re-institute after any major downturns - resulting in lower prices, higher dividend %, and larger IVs in the Calls. Only five of my 22 positions are currently under water - stabilizing no more than $4 under the sold Calls- and receiving higher % dividends and milking Call premiums, I hope to resell Calls "above" expiring levels at expiry.
One that got away today is PM, which went ex-D today, being called away.
Factoring in the sold Put in late July (5 months ago), 200 PM was put to me at 70 in Sept. - net of Puts, Calls and 1 dividend, I received $804 (net of all commissions), divided by a cost of $14009 resulted in 5.74%, or an annualized (if done over 12 months) of 13.77%.
Here is a great link for finding DITM stocks:https://mail.google.com/mail/u/0/?hl=en&shva=1#inbox/1345c508ea5d3346
Happy Holidays to All!

1 comment:

  1. Hi Brent,
    It appears that link at the end of your post is a link from gmail (mail.google.com) and asks us to login to gmail. Is that correct?
    Thanks for putting together a great site!