Updating the 200K insane returns short-term naked put-writing portfolio
04/03 - initiation of the 200K portfolio with the S & P at 1,570
04/09 - 197,945 (S & P 1,569), low valuation from inception
06/10 - 222,315 (S & P 1,643)
06/24 - 202,375 (S & P 1,573)
07/23 - 235,015 (S & P 1,692)
08/02 - 213,445 (S & P 1,710)
08/09 - 177,015 (S & P 1.691)
08/15- 201,485 (S & P 1,661)
08/16 - 193,305 (S & P 1,656)
Dn 02.3%. Portfolio gain to date
Up 05 5%. S & P 500
1) 500 contracts of the JCP Jan. 08-strikes (stock at $13.40)
2) 040 contracts of the KORS Jan. 45-strikes (stock at $70.20)
3) 200 contracts of the JCP Jan. 10-strikes (stock at $13.40)
4) 080 contracts of the AIG Jan. 35-strikes (stock at $46.54)
5) 100 contracts of the HPQ Feb. 16-strikes (stock at $27.00)
1) $2,005 profits in four weeks on a $17,550 investment in the JCP May 10-strikes
2) $1,355 profits in six weeks on a $16,600 investment in the KORS Aug. 36-strikes
3) $2,460 profits in five weeks on a $14,605 investment in the JCP July 10-strikes
4) $9,390 profits in sixteen weeks on a $40,500 investment in the JCP Aug. 10-strikes
Note: Someone just looking at the remaining positions and the already-booked profits might think that I was way up on this portfolio. But the premiums on controversial JCP are just astronomical right now and there are heavy paper losses in my two remaining positions in that stock despite the fact that the strike prices are still considerably out of the money.
The two positions expire in January, 22 weeks away, and that time continues to draw nearer. Unless something truly strange happens, those options figure to expire worthless and if they do, this portfolio will be showing great profits. I don't need for JCP to recover any of its lost ground and indeed I can have the stock be even $10 in five months and I would still have those great results.
So for those who might be chortling at my results to date, remember that little adage about he who laughs last.
Yes, Alan does represent talent and aptitude with numbers. I've been lauding that fact ever since I've been on this board. One doesn't have to be overly gifted to jump to that conclusion. All what one has to do is pay close attention and study how it's done. Great things come to those who have patience and are willing to wait for the fullness of time.