Veteran traders remember TW3 ( That Was The Week That Was) -
what a way to start the end of Tax Season: First Gold tanks , after a steady
drop from late last year; then the stock market tanks after a steady and boring
rise. And, of course, capped off with the terrible tragedy in Boston!
Finally the frustration of lagging the huge Bull Run with most of AUM paid off with the Safety Net of
DITM today. Of all my 20-something positions, only 4 went "under
water", since the Bull's pushing stocks way up above the Call-Away strike price. Only the
Oil stocks - PWE, ERF, QRE, and, of course the recent NEM buy are "temporarily?" under
water, but still paying a nice dividend and milking option premium.
Although constant monitoring is required, this could be a great buying opp. Since by being pretty
much fully invested and rolling out calls has kept DITM activity in the blog
dormant, I thought I'd incorporate some results from my new LEAP strategy as
well.
In my Examiner.com column,
which I titled Leap Into the Future, I
discussed a few $5 to 10 stocks - not recommendations, but examples. With gold
down bigtime, I'm now looking at IAG and KGC to capture huge premiums. More
risky stocks would be HL, HEK ( a water play), NOK. With only 7 quarters left
until January 2015, annualized returns are substantial, and losses minimal -
even if they disappear entirely (unlikely). If they don't rally, another set of
2-year Leaps could cover the entire cost of the stocks, especially with
dividends rising.
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