Tuesday, July 16, 2013


After a wondrous string of double-digit gains in DITM so far in '13 (see previous columns), I decided to take my first loss - NEM (Newmont) which was more of a gold play than DITM . As it seems to happen more often than not (Behavioral Finance) it appears that after declining since last Oct., it may have bottomed and MIGHT be a good chance to enter NEM,with its dividend and gold prospects (!).
Thanks to DITM, however, the loss was mitigated by the calls sold on 200 shares. Bought for $7903.sold for $5404. But since I bought NEM at $39.47 and sold for $5404, having sold the DITM 37-strike calls for $792 and receiving $155 in dividends, it wasn't as bad as losing 12 points on 200 shares.
After such a large run up in the market, I probably will sit tight on my 25 positions ( some LEAPS to be discussed later); I go into my vacation cycle next month, and the market goes into its bad cycle in Sept.-Oct.