Monday, May 20, 2013


Option expiry saw the call-away of a long held stock - WMB (Williams Cos.). Like the aforementioned MCHP (previous column), it was held over a year, and called in two lots, which makes for ugly FASB accounting. But called after 12 and 14 months, respectively, I averaged it to 13 months, making the 13.12% return become 12.11% annualized.

Not too bad, considering this week's Barron's reports the average hedge fund returned 4.3% the past 3 years, and 8.25% in 2012. The unhedged S&P 500 is up 10.9% over the past 3 years, but only 8.6% annual since 1992.

Despite the historically poor May-Nov. semi-cycle, I am looking for both more DITM and LEAP trades - please see my article for the rationale:

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