GOOD DAYS, BAD DAYS

If one chooses to only remember the sunny days instead of the rest, the happy days but not the sad - then one can say 2012 was not the best year for DITM, compared to the previous three. If a mistake was made, it was overinvesting in Energy and Materials  stocks, which had good dividends and juicy call premiums, and the hope of "Fracking", etc., to lift stocks such as symbols PGH, PWE, VALE, CLF, and ERF.  Ergo, it vastly underperformed the SPX on the year.

Although most went slightly under water ( below the In-The-Money call option sold) and was held on to with normal covered call rollouts of the same price, enough (four) were sold at a loss, bringing the year down to a less-than-average return of just over 7% (still much better than MM funds, CDs, etc.).

As the end of four years of testing/investing DITM ends in May, I was asked to update results last weekend before the San Francisco Bay Area Options Group. Below is posted the 2012 results ( both opened in 2011 and in 2012, but closed out in 20120; also  the "annualized" results of other time frames, totaled.

Finally, and best of all, is the result of actual trades in my small IRA from the start of DITM in May of 2009 - a microcosm of DITM with no contributions or distributions, losses, experiments - such as capturing stocks paying annual dividends with an ITM call- and the beginning learning curve. 

OPENED	2011	2012	DITM
DATE:	SYM	#MOS.	ANN.%
5/24/2011	WM	17	5.66%
6/27/2011	BMY	9	9.09%
8/20/2011	DIA	8	6.06%
8/20/2011	MAT	7	8.56%
7/21/2011	LO	7	16.00%
9/16/2011	PM	5	13.77%
10/12/2011	COP	4	12.33%
10/25/2011	EPD	3	5.56%
10/26/2011	LLY	4	9.65%
11/1/2011	INTC	2	15.75%
11/28/2011	TAL	3	13.36%
12/1/2011	KMB	9	10.13%
12/1/2011	SDRL	9	10.13%
12/5/2011	MRK	3	9.55%
12/16/2011	NUE	4	17.72%
12/27/2011	DOW	3	22.47%
5/16/2011	CVX	8	10.77%
5/20/2011	NOC	8	8.00%
		TOTAL%:	204.56%
5/10/2011	TOT	8..	9.37%loss
5/20/2011	SVU		8.9%loss
		TOTAL%:	18.27%
		TOTAL:	186.29%	div.2= 9.14% #TRADES: 20 9.31%
********	OPENED	2012
1/3/2012	VZ	6	8.06%
1/19/2012	SCCO	8	18.20%
2/21/2012	JNJ	5	5.00%
2/21/2012	NVS	5	10.40%
2/27/2012	TLT	3	4.31%
6/5/2012	PEG	6	10.33%
4/19/2012	MAT	4	10.92%
4/24/2012	STX	4	16.45%
4/27/2012	LLY	4	8.93%
5/1/2012	APL	6	23.80%
5/22/2012	SDY	4	7.82%
5/25/2012	SFL	4	16.29%
6/11/2012	HUN	3	40.00%
6/19/2012	IRM	3	5.60%
7/16/2012	QRE	3	14.87%
8/7/2012	AHGP	3	14.19%
4/19/2012	LINE	12	8.24%
	TOTAL%:		223.41%
2/1/2012	ERF	4	39.05%
9/17/2012	VALE	2	7.73%
4/16/2012	CLF	2	18.89%
10/18/2012	CLF	2
11/13/2012	PGH	3	27.09%
	#months	96	92.76%
	23.19%	avg.mo:	4.5mo.
TOTAL:	130%	#TRADES:	21
	YEAR(Open)	#trades	net%
GRAND	2011	20	9.31%
TOTAL	2012	21	6.19%
full year		41	15.50%
average		21	7.75%