Friday, November 16, 2012


If PRO is the opposite of CON, what is the opposite of PROgress?
Even Bowles and Cranston are leery of avoiding the Jan.2 deadline, and the dividend tax hike is taking its toll, as well as yearend institutional window dressing of funds.

The DITM portfolio is nervously, but only slightly, under water - so I am holding onto all my positions at this level. I expect (as with today's Thanksgiving tongue-biting appeasement by both parties- why do they call them parties?- ) that stocks will rally before Dec.31.

Still, the only real flaw of DITM is a Bear market, of which there have been either 1 or 2 each decade since 1900. Tomorrow I give a talk on hedging for this possibility to the S.F. Options Group.

November option expiry only saw one Call expiring - others have been rolled out- as is the case with WMB. I rolled down a call from 30 to May 29 (after rolling it up from 28 earlier. If called away then, it will have been a 14 month hold, for an (annualized) gain of 12.35%. WMB still looks like a stable stock in a good Sector.

Although VNR and PWE looks exceptionally ugly, I sold puts today to take on more stock before their ex-dividend date. 

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