Wed, Aug 20, 2014, 2:57 PM EDT - U.S. Markets close in 1 hr 3 mins

Recent

% | $
Quotes you view appear here for quick access.

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.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
PFE
28.9045-0.0355(-0.12%)2:56 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.