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Pfizer Inc. Message Board

  • chrttwelve chrttwelve May 14, 2011 3:08 PM Flag

    How the 100K naked put-writing portfolio fared last week

    It was kind of a disappointing week for this portfolio which could manage only an 0.2% gain from $142,020 to $142,260. Still, this performance bested the S & P 500 which edged down from 1,340 to 1,338. Put option premiums are quite high as investors are apparently expecting the market to correct - especially with the financials as weak as they are.

    For 2011 to date, results are as follows:

    Up 17.7% for the naked puts ($121,720 to $142,260)
    Up 06.3% for the S & P 500 (1,258 to 1,338)

    Since inception near the 9/16/10 close, the comparisons are:

    Up 42.3% for the naked puts ($100,000 to $142,260)
    Up 19.0% for the S & P 500

    With 2/3 of the one-year duration of the naked put portfolio now over, these funds have a 63.3% annualized return. With put premiums as high as they are and with time continuing to ebb away, I don't expect full twelve-month results to go down much from the annualized returns I now have. My best estimate of where I'll stand on Sept. 15 is a return ranging between the mid-50's and the low 60's. And that's just other-worldly as far as I'm concerned for such safe, stable blue-chip stocks.

    On that date, I will close out all remaining positions, transfer the profits to the bank to reduce my reverse mortgage balance and then I'll start a new 100K naked put-writing portfolio the next day but using just 100K instead of using some of the accumulated profits as I'm doing now.

    Each year on Sept. 16 (Mexican Independence Day), I will start over with 100K and I'll bank the profits. That way after I have accumulated profits over several years, I won't be in danger of losing the stack should a truly horrific market come along.

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31.95-0.65(-1.99%)Jan 28 4:01 PMEST

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