Well this has been annoying...
After 30 days of trading our current virtual portfolio value is just $100,454.39 as we took quite a setback when we sold naked calls ahead of the move up. Fortunately, we didn't lose our cool and rode it out. In fact, we only made one trade in the past two weeks so there hasn't been much to report and there still isn't but the end of our first month is a good time for an update. Of course, we do have a lot of outstanding October Premium to collect so the next two weeks are when we make our real money...
We still have $92,315 in cash so plenty of buying power should we choose to deploy it but we are sticking with our plan of scaling into the postions we have, which means we're letting them run out through October 16th expirations and we'll see if we finally get the bargains we've been waiting for to set up our longer term bull plays. For now, in this VERY conservative, low-touch virtual portfolio, we've been following Warren Buffett's Investing Rule #1: Don't lose money!
| Description | Price Paid | Last Price | Qty | Market Value | Margin Req. | Profit Loss | % |
|---|---|---|---|---|---|---|---|
| AIG CALL 40 Oct 09 | $6.30 | $5.50 | -1 | $550.00 | $1,196.20 | $80.00 | 12.70% |
| On target with AIG at $43.40, this is typical of our outstanding sales with the VIX so high - we just have to wait. | |||||||
| AMZN CALL 90 Oct 09 | $3.60 | $2.80 | -10 | $2,800.00 | $16,127.50 | $800.00 | 22.22% |
| We wouldn't do this play if we needed the margin but a nice $2,800 to collect if AMZN stays below $90 | |||||||
| BAC CALL 10 Jan 11 | $8.60 | $7.50 | 5 | $3,750.00 | $0.00 | -$550.00 | -12.79% |
| BAC CALL 17 Oct 09 | $1.27 | $0.43 | -5 | $215.00 | $1,110.50 | $420.00 | 66.14% |
| BAC PUT 17 Oct 09 | $0.97 | $1.09 | -5 | $545.00 | $1,770.50 | -$60.00 | -12.37% |
| BAC PUT 20 Jan 11 | $5.45 | $6.30 | 5 | $3,150.00 | $0.00 | $425.00 | 15.60% |
| Drifting right around our $17 target is perfect. | |||||||
