Friday, August 16, 2013


After celebrating a four year DITM run of an annual 11% return in my small IRA ( the microcosm of the DITM with 6-7 dividend stocks), the fifth year began with the May 22 top in the market, sending DITM into "Stall Speed", going basically sideways. The main reason was poor Sector selection on my part, not DITM's, going with natural resources and gold. This is now paying off, as we go into another correction. Another reason is that the cyclical rally has pretty much killed volatility (call premium) with the VIX going to 11.

Other than option rollouts, the only recent trade was UVV, underperforming my average with its 8.38% annualized return, but still better than cash ( one account I manage had a muni  bond mature which I refuse to renew at current zero rates - estimated annual return by Wells Fargo for $250,000 - $15!!!

Other than selling puts on NEM which expire worthless today, I sold some puts on POT hoping to take it on before ex-Dividend. As mentioned elsewhere, this is the time I normally take vacations, as well as the market swooning into the "Fall". Ergo, I shall let positions play out, without new ones.

BTW - this weekend I'm writing a review of the Money Show at:

Thursday, August 1, 2013


I just cannot get out of Gold! After taking a loss (sic) on NEM recently, today I sold 2 Sept. 29 puts to cover just before ex-Dividend in Sept. Beats MMFs.

Recent research has me worried about this slamdunk market - that most large corrections are preceded by a huge last minute rise. Being dividend-oriented, I took a position in Annaly Mtge (NLY) buying at 13.38 and just selling the 13 Call. Down from its recent  $16 high, I thought it might be oversold, but it keeps slipping. Now at 11.60, if I sold the loss would be: $5361 less 293 for Calls sold, less $160 dividends, less a Sale price of $4600 (using $11.50). Net: ($308); where the ORP (lawyereze for Ordinary Reasonable Person) would have lost more than twice that - $752 ( if selling before dividends).
Another benefit of DITM! /