$25,000 Portfolio Review ($25KP) : Not much to report here, GMCR burned us but now we can turn that into a nice winner if it comes back down. Since we made $5 on the short puts, our break-even is $14.50 and we're almost there already. USO not going to well but not worth adjusting either. I'd like to roll up to the $39 puts, now $1.99 for .50 or less if oil goes higher (now $102.45). NFLX we just added today. Butterfly Catching Portfolio : I cannot stress enough how great this portfolio is for the conservative investor. We're using just 1/6 of our buying power and generating 20% profits on the whole portfolio. That means that 1/6th that's working is up 120% so far! You never want to go more than 50% invested – just in case one of your positions blows out and you have to adjust but we have plenty of room to add more – when we identify another stock with options that are priced more volatile than we expect the stock to be. It's a rough criteria but we seem to find them often enough. The low VIX makes it rough at the moment. Still, up 5% since last month – not too shabby! BTU – That one has been a wild ride and we'll need to roll the May $16 caller ($3.15) to the Sept $17 calls ($2.70) for net .45 . We're getting more confident in the long story here, so we'll spend $450 to move up $1,000 in strike on our 10 contracts. Don't forget, these trades don't terminate in 2016 – we'll simply roll our long positions out to 2017 or 2018 when the time is right and keep on rolling the short positions - RAWHIDE ! CZR – This one is like a little cash machine. Looks like we're on the nose this month and that means we're profiting almost all of the $3,200 worth of puts and calls that we sold on 3/31 (45 days) against our $6,600 long position, so that's 48% …
$25,000 Portfolio Review ($25KP):
Not much to report here, GMCR burned us but now we can turn that into a nice winner if it comes back down. Since we made $5 on the short puts, our break-even is $14.50 and we're almost there already. USO not going to well but not worth adjusting either. I'd like to roll up to the $39 puts, now $1.99 for .50 or less if oil goes higher (now $102.45). NFLX we just added today.
Butterfly Catching Portfolio:
I cannot stress enough how great this portfolio is for the conservative investor. We're using just 1/6 of our buying power and generating 20% profits on the whole portfolio. That means that 1/6th that's working is up 120% so far! You never want to go more than 50% invested – just in case one of your positions blows out and you have to adjust but we have plenty of room to add more – when we identify another stock with options that are priced more volatile than we expect the stock to be. It's a rough criteria but we seem to find them often enough. The low VIX makes it rough at the moment. Still, up 5% since last month – not too shabby!
- BTU – That one has been a wild ride and we'll need to roll the May $16 caller ($3.15) to the Sept $17 calls ($2.70) for net .45. We're getting more confident in the long story here, so we'll spend $450 to move up $1,000 in strike on our 10 contracts. Don't forget, these trades don't terminate in 2016 – we'll simply roll our long positions out to 2017 or 2018 when the time is right and keep on rolling the short positions - RAWHIDE!
- CZR – This one is like a little cash machine. Looks like we're on the nose this month and that means we're profiting almost all of the $3,200 worth of puts and calls that we sold on 3/31 (45 days) against our $6,600 long position, so that's 48%
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