... more than just covered calls!

  Active $10k Portfolio Historical Data

 

This portfolio began on May 1, 2009 with a $4000 deposit.  Initially, the proceeds from the sale of call options remained in the money market.  On June 30th, the decision was made to go with the 'fully invested' SysCW method as opposed to the 'cash withdrawal' program. CHS was added as the fifth holding at that time. In July, an additional $4000 was added to the account making this the $8k Portfolio.

January 2011 ... $2,000 in funds were added to this portfolio. It will now be referred to as the $10k Portfolio.

Note: Previous comments can be found below the Position Tracker data.

IMPORTANT - The 'Current Value of Stock in Portfolio' is not the same as a liquidation value.  This figure simply reflects the current value of the stock that was purchased.  We know what we paid for it ... and this figure indicates what it is worth as of a given date.  The significance of this data point lay in the fact that it let's us know if our stock are appreciation or losing value.  In order to liquidate the portfolio, any existing calls would need to be closed (purchased). Needless to say, we would 'like' our purchases to appreciate, but as you should know, that is not a requirement to making money with a covered call portfolio.

February 11, 2011- Two positions have February expirations.

January 7, 2010 - No new CLOSED positions to report. We do have four positions with January expirations. Two will be assigned based on today's prices. There are currently 9 ACTIVE positions in this portfolio.

October 21, 2010 - The data is current as of this morning. We have one position with a November option, so we will have some activity next month.

September 24, 2010 - We had our CAL position go back to cash this past week.

September 1, 2010 - Nothing new other than values have been updated to the current price. We do have a CAL position with a Sep $20 call that looks at this time like it will be a winner.

July 7, 2010 - We rolled the AMLN position, which was the only position with a July option. Last month we sold another call against the LDK position. This time we used the Aug $6 call, and to protect the investment we also entered a GTC BS order for 100 shares of LDK @ $6.28.

May 30, 2010 - The month is over ... as far as trading is concerned.  We still have the same number (9) of CLOSED positions, and with our 8-ACTIVE positions, we did not have any with May expirations which weren't rolled already. So ... there is not much new other than the decline in value of the overall market.  This of course is something we learn to 'live' with.  The value of our purchases will vary ... both higher and lower ... we cannot control this. What we can do is to make sure we are paid because we have the positions on the first place.

May 7, 2010 - This week brought with it the largest intraday selloff on the DOW stocks ever recorded.  Always remember  ... the price of a stock 'today' is not a significant concern, for it is the price at expiration that will determine the outcome of each position. As of market close on Friday May 7, 2010, we have four out of eight positions where the stock is still trading above the existing strike price. Our LDK position continues to be the 'worst' performer. Even so, that investment has still generated 29.43% in new cash. This position also happens to be the one where our next trading activity will take place next as it is the only position with a June expiration.  Until then ... we just wait.

April 16, 2010 - Our SNDK position was assigned. This brings us up to NINE closed positions. The proceeds from that sale will be reallocated next week.

March 31, 2010 - It's not broke ... so we have no intention of 'fixing' it!  Our only activity this month was the sale of the LDK call.

March 8, 2010 - We only have the LDK Interim Trade to deal with this month.  Looks like our call will expire, which means we will just sell another one.

February 26/28, 2010 - At month end we have an AISN value of $11,036.14, which means if the prices stay right where they are, our btc balance will $11,036.14 when all positions are either assigned or closed at expiration. The current winning percentage is 62.50%. We only have one position with a March expiration, so things will be rather quite in this portfolio for a while. 

January 27, 2010 - After adding AMLN, F, and LIZ to this portfolio, we are now fully invested once again. We do have two positions with February calls. One is CHS, while the other is RMBS. As of today, they both look like they will be going to cash. We also established our first Interim Trade with the sale of the Mar $7.50 call against LDK.

January 21, 2010 - Portfolio was updated today.  Big sell off in the market, and the second 'replacement' RMBS position.

January 18, 2010 - As expected, we had a number of Initial Positions assigned. We now have a total of six positions that have gone back to cash. The proceeds will be reinvest over the coming weeks. Again ... the worst performer is LDK, with the stock trading below $8 a share, we will use the Mar $9 call as our first 'Interim Trade' in this Portfolio. Do note the Initial Call Option did bring in over 22% so we have our target for over a year in the bank.  We will continue to add cash with the sale of new calls as we wait for this stock to recover.

December 28, 2009 - Now just waiting for the January options to either be exercised or expire. The only stock that is not doing well is LDK.  It is currently out of favor, which can happen.  Fortunately, we already have over 22% of the cost of this stock in our hands.  Such is the value of downside protection.

November 21, 2009 - RMBS was assigned on Friday.  We will take the proceeds from the sale and the bulk of the cash in the money market, and begin a new RMBS holding on Monday. 

October 16, 2009 - We had our first two options reach maturity. In both cases the current price of the stock was above the strike price, which meant the stocks were assigned. The positions are now 'Closed' and the data reflecting their gain is moved to the upper section of the position tracker. Me made exactly what we thought we would make when the positions were established this past May. When we establish an Initial Position, we do so 'knowing' the math. We also do know knowing that either the call is going to be exercised, or it is not. Those are the only possible endings if we do not intervene.

We do have one RMBS position with a November expiration. That position also looks like it will 'work' as the stock is currently trading above the strike price.

August 11, 2009 - $4000 in additional funding was provided on 8/10/2009. BAC, F, HGSI and LDK were added to the portfolio today.

PLEASE NOTE THAT THIS PORTFOLIO IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN STOCK OR ANY OTHER EQUITY.  THE INFORMATION IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY.  THERE IS NO GUARANTEE THAT SIMILAR TRANSACTIONS CAN BE EXECUTED IN THE FUTURE. INVESTING IN THE STOCK MARKET INVOLVES RISKS, DO SO ONLY WITH A KNOWLEDGE AND UNDERSTANDING OF THE RISKS INVOLVED! STRATEGIES INVOLVING TAX ISSUES SHOULD BE DISCUSSED WITH YOUR TAX PROFESSIONAL.

The information provided above is for informational purposes only, and no mention of a particular security constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction, investment strategy is suitable for any specific person. You further understand that the Covered Writer will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information available on this website may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Always remember that past results are not necessarily indicative of future performance.

These are the terms of use.  Why are they here?  Because the examples provided are real.  The transactions actually took place.  The dates are real, the positions are real.  Some transactions will have been executed on the day you receive the email.  What you are agreeing to, is the fact that in no way is it being suggested that you can, or should, enter a similar position.  Why?  Because that would be providing investment advice and the Covered Writer is not authorized to do that.  There is also no guarantee that similar transactions could be executed at any time in the future. Only licensed brokers are allowed to provide investment advice.  Therefore, you are agreeing that the preceding example was provided for 'educational purposes' for the sole purpose of illustrating the Systematic Covered Writing strategies.

Thank you!

SYSTEMATIC COVERED WRITING
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Revised: 05/08/12