Monday, January 23, 2012


I was very pleased with the Saturday SF Options Group presentations this past weekend at Fort Mason: a packed house, in spite of the conflict with the TSAA meeting with the Martin Pring group at GGUniv. I, and 3 other DITM adherents, spoke with minimum redundancy (I hope) and conveyed the great record of safety and return from each speaker. SFOG fellow members Don Blesi and Bob Price related their experiences with DITM and John Chernicky talked on some related information. All of the information will be posted soon at the SFBAOG Yahoo website for members -
This past option expiry saw some activity in my accounts:
I had another infrequent loser (my six in 3 years) with TOT, it being both European and an oil company, I bailed by rolling out to lower calls, finally called away Friday for a $365 loss (plus $200 from a put spread hedge).
NOC got called away - not worth rolling out- for an 8% annualized profit over 8 months; CVX ran away from me, but gave me a 10.77% gain, also 8 months.
As mentioned in my talk, my small IRA,the purest DITM account of the 5 family ones I invest in, finished 2011 with a 12.87% REAL (not annualized) gain; my brother's IRA, despite his MRD (minimum required distr.) still gained 9.4%.
My loser #5 - BTE, a Canadian oil company which I gave up on (and shouldn't have), I bought at just over $55 and sold at $43.70, but with the dividend and calls, only lost less than $700 per buy/write, rather than $1200 - after selling it in Sept. (see previous DITM blog) it rallied back to today's $57.28 - higher than when I bought it. Another trade I did (outside of DITM, as it didn't qualify with less than 2% dividend) was CAT - I caught the very top at $111, sold a 105 put to scalp some $$, and it dropped to below 70!! Not giving up, I rolled the puts - bot at $2100, resold at $2200, and 4 more rollouts, until the 105 put expired with CAT at 105.67 Friday. Forget IBD's 8% stop price - Buy And Wait (Not Buy And Hold).
Things should even get better - Barron's cover story this week was The Magic 4%; the belief that stocks have to raise dividends this year, due all the corporate cash and nowhere to put it!

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