Butterfly Collection Review

My goal in starting these virtual portfolios was to get people excited about safer investments.

I was very upset to see so many people losing money on the downturn and I’m doing these new virtual portfolios to emphasize that you do not have to take big risks to make good money.  So far this week we’ve concentrated on the $10KX and the Butterflies and now that those are moving we’re ready to buy some very dull stocks (or at least sell some puts that may make us buy stocks if we are unlucky). 

Note that we were totally blown out of our range on AAPL yet we still made good money, and the trade isn’t over yet…  Of course they had a nice bounce back but we make our own luck with these trades and the best thing about butterflies and condors is you can go away for a week and nothing happens so they are the ideal summer fun plays. 

BIDU will head up to the top of our range in the morning and may break higher, I’m inclined to take out the $290 putter, probably for $5 and hang tight for a pullback – sort of the reverse of what we did with Apple, who blew down on us.  The difference is that Apple went down for no good reason while BIDU is up for great reasons so we’ll have to play it by ear: