Up 48.9%. Portfolio gain to date
Up 30.9%. BIDU stock from inception
Up 08.7%. S & P 500 from inception of investment (1,557 to 1,692)
Note: This is one of the fastest-growing companies its size in the world but with a sharp one-year slowdown in 2013 due to massive R & D expenses this year. The recent earnings history and downwardly-revised consensus expectations for this dominant Chinese search engine are as follows:
$1.53 in 2010 (actual)
$3.02 in 2011 (actual)
$4.79 in 2012 (actual)
$4.97 in 2013 (consensus - 04% expected annual growth)
$6.28 in 2014 (consensus - 26% expected annual growth)
$7.40 in 2015 (consensus - 18% expected annual growth)
The leverage factor for this investment is around 2. Over time, each point higher in the stock will be worth $8,300.
Is THAT what you call an investor who has earned $160,500 or 53.5% in just four months on a 300K investment - a loser? We should all be such losers.
Yes - BIDU has gotten away from me on the upside; I sure wasn't expected a parabolic move of 39% on a closing basis in just 13 trading sessions.
But while obviously I could have made even more had I not decided to sell covered calls, I'm still not through making money on BIDU. When the stock inevitably gives back some of the monumental gain, I'll be rolling for free or for a credit the Aug. 105-strikes that I'm currently short to something like the March 115-strikes. Later on, those will in turn be rolled to something like the 130-strikes expiring in Jan. 2015.
If the stock is $130 or more in 18 months, I'll cash out about 85 units at $800 per unit (long the 50-strikes and short the 130's). Having received already about 20K in covered call premiums, the original 300K investment will have turned into 700K over the 22-month holding period between late March 2013 and the third Griday of January 2015.
By the way, are you aware that my combined portfolios are currently sporting a gain of 38.1% for 2013 to date (S & P up by 18.6%). I'm well on my way to earning and overall return in the 50's or 60's this year after having posted combined porttfolio gains of 58% in 2011's flat market and then 42% last year.
Who besides me is capable of posting three consecutive years of such returns? NOBODY else does that. Move over the likes of Paulson and Miller because you are playing hind tit to THE VERY BEST PERCENTAGE WEALTH CREATOR in the land. That of course would be ME!
I am not a broker and so I cannot advertise "brokerage services." What I am is an options advisor nonpareil and I consider myself to be the very best percentage wealth creator in the land for those having between 5K and 2M to invest. Within 180 days I'll be registered with the State of California and I'll have brokers at TD Ameritrade who will likely want to advertise my services.
The brass at TD Ameritrade can see for themselves the incredible record that I have had since my amazing Eureka moment 23 months ago and they want me to become registered and to move the accounts to their Institutional section where they can advertise my services.