Speaking of the Money Talk Portfolio, I'm on the show Wednesday and I've got to write up a review:
From a $50,000 start we're up 74% to $86,975 in our first year. These are very much "set and forget" trades as we have never even made an adjustment and they represent trade ideas that were made on just two shows - one in January and one in September.
As with many of our Philstockworld trades, we use very little cash for our initial positions, saving that firepower for adjustments if a trade goes south but, when they don't - they can be money-gushers. These trades, of course, follow our strategy of "Be the House - NOT the Gambler" in which we sell more premium than we buy, giving ourselves a tremendous edge every time we make a trade.
AAPL - This is a $30,000 spread that cost us $6,100 in cash to initiate and the margin required on the short puts is $8,541 but worth it as we had very little fear Apple would fail $140 so the risk was deemed low. Currently, the spread is net $13,550, which is up $7,450 (122%) but we still have another $16,450 left to gain so, even as a new trade, this makes a very nice 12-month return from here.
IMAX - IMax has run into trouble recently but we sill love this one as a new trade at essentially the same price we paid for it. Actually, it's up $175. As an adjustment, however, we are going to roll the March $18 calls ($1.88) to the Sept $15 ($5.20)/20 ($2.20) bull call spread at $3 for + $1.12 ($2,240) and we'll buy back the short March $22 calls for 0.35 ($700) so $2,940 added to our original $1,250 outlay means we're in the now-wider $10,000 spread for net $4,190 and, if all goes well - we'll have a gain of $5,810 (138%) on the trade's 1-year anniversary if IMAX is over $20 so great for a new trade!
