12/31/12 - 250,000 - (S & P 1,426) Beginning balance for the new year
01/02 - 262,500 - (S & P 1,462), low valuation of 2013
01/29 - 291,770 - (S & P 1,508)
02/07 - 282,320 - (S & P 1,509)
02/19 - 292,080 - (S & P 1,531)
03/04 - 277,090 - (S & P 1,525)
04/11 - 301,160 - (S & P 1,593)
04/18 - 285,690 - (S & P 1,542)
05/08 - 326,675 - (S & P 1,633)
06/24 - 268,615 - (S & P 1,573)
07/23 - 308,890 - (S & P 1,692)
08/07 - 290,700 - (S & P 1,691)
09/18 - 329,185 - (S & P 1,726), high valuation of 2013 to date
10/15 - 287,795 - (S & P 1,698)
11/01 - 307,450 - (S & P 1,762)
11/04/13 - transfer 140K to the new JCP put-writing portfolio)
11/04 - 171,840 - (S & P 1,768)
11/06 - 168,440 - (S & P 1,770)
11/08 - 170,245 - (S & P 1,771)
11/15 - 180,075 - (S & P 1,798)
Up 28.8% - 2013 portfolio gains to date (based on average invested capital of $243,800)
Up 26.1% - 2013 S & P gains to date
PBR 15-strikes for Jan. 2014 (60 contracts with stock at $17.27). .
JCP 8-strikes for Jan. 2014 (100 contracts with stock at $9.03)
JCP 5-strikes for Jan. 2015 (200 contracts with stock at $9.03)
QCOM 45-strikes for Jan. 2015 (25 contracts with stock at $72.17)
GG 23-strikes for Jan. 2015 (50 contracts with stock at $24.32)
AGNC 20-strikes for Jan. 2015 (50 contracts with stock at $21.42)
KORS 45-strikes for Jan. 2015 (30 contracts with stock at $82.73)
AIG 37-strikes for Jan. 2015 (30 contracts with stock at $49.30)
03/25 - transfer in 300,000 from the Pfizer portfolio. BIDU stock is at $84.85, S & P 500 is 1,557
03/25 - 302,740 - ($85.33) RSI 35.0
04/02 - 323,085 - ($88.12) RSI 46.6
04/05 - 293,125 - ($83.59) RSI 34.8, lowest stock close and valuation from inception
04/12 - 337,805 - ($90.62) RSI 56.9
04/22 - 306,925 - ($85.66) RSI 42.2
04/25 - 349,725 - ($92.34) RSI 60.2
04/26 - 305,205 - ($85.02) RSI 44.2, Q1-13 earnings and 2013 outlook disappoint
05/03 - 300,285 - ($84.51) RSI 43.5
06/10 - 428,205 - (102.99) RSI 66.9
06/24 - 352,765 - ($89.89) RSI 37.8
06/28 - 382,900 - ($94.60) RSI 49.3
07/03 - 351,125 - ($89.22) RSI 38.5
07/24 - 453,520 - (113.37) RSI 75.2, session prior to release of Q2-13 earnings
07/25 - 460,575 - (125.85) RSI 83.5, Q2-13 earnings released, outlook for year raised
08/02 - 459,585 - (139.70) RSI 89.0, one of the highest RSI readings seen in any stock
08/13 - 475,155 - (141.53) RSI 78.7
09/05 - 438,150 - (132.99) RSI 51.3
09/11 - 473,925 - (147.31) RSI 70.0
09/13 - 459,120 - (142.64) RSI 60.9
10/30 - 503.335 - (164.93) RSI 60.4, highest stock close from inception
11/07 - 482,090 - (147.35) RSI 42.2
11/08 - 489,490 - (150.09) RSI 46.6
11/15 - 508,790 - (162.33) RSI 58.9, highest valuation from inception
Up 69.6%. Portfolio gain to date
Up 91.3%. BIDU stock from inception
Up 15.4%. S & P 500 from inception of investment (1,557 to 1,798)
In closing at $32.00 yesterday, the range for the year on a closing basis rose to 23.8% marking at least the 32nd consecutive year for the range on a closing basis to be 23.7% or more. In 29 of those years, the range has surpassed 25%. Another 30 cents would give 2013 a 25% range.
If the Theory holds again in 2014, I would surmise that the range would be something like the 28's at the low close and perhaps $35 or so at the high. If the $32 area were to hold as the low, it would take almost $40 at the closing high for the Theory to work and I cannot see that happening with such lackluster earnings growth.
My takeaway is that during the new year, there will be a pretty substantial market pullback which would send Pfizer down 10% or more from current levels.
Sold 100 contracts of the 6.50-strike weekly series expiring on Dec. 13. The options fetched an average of $19.50 apiece or $1,880 after commissions with cash margin utilization being $8.650. The nominal return for the 4.2-week holding period is 21.7% which amounts to a fabulous 5.17% per WEEK. These 6.50-strikes were sold when the stock was at $8.96. Look at the SAFETY that goes along with this return.
Daniels Options Consulting leads the nation when it comes to this kind of investment.
11/15/2013 10:07:57 Sold 46 JCP Dec 13 2013 6.5 Put @ 0.2 886.57
11/15/2013 10:07:57 Sold 4 JCP Dec 13 2013 6.5 Put @ 0.2 77.69
11/15/2013 10:10:12 Sold 50 JCP Dec 13 2013 6.5 Put @ 0.19 914.28
I get a 30% tax credit and a 10% refund from the Power Company. But I still have to pay 60% of the cost myself which leaves me 19K out-of-pocket. If I had to stand the full cost myself, I simply wouldn't have done it as I on ly save about $1,500 a month on energy costs.
Even though I'm a staunch Republican, I did have to vote for Obama last time. At least he stands for something whereas Romney is a total flip-flopper who stands for nothing.
Still, I consider Obama to be one of the worst Presidents in history even though the stock marfket has surged during his Administration.
11/12/2013 13:02:33 Sold 42 JCP Nov 29 2013 5.5 Put @ 0.07 262.88
11/12/2013 13:02:33 Sold 8 JCP Nov 29 2013 5.5 Put @ 0.07 51.39
11/12/2013 13:04:23 Sold 50 JCP Nov 29 2013 5.5 Put @ 0.07 314.29
11/12/2013 13:07:22 Sold 50 JCP Nov 29 2013 5.5 Put @ 0.07 314.29
By the way, if a so-called hedge-fund manager like Carl Icahn were to buy shares in JCP now at $8.34 and saw the stock all the way down to $5.55 by Black Friday, how do you suppose that such a manager would stand with respect to performance on his investment? As opposed to the over 30% loss that said hedge fund manager would have, yours truly would have a 9.8% PROFIT in such a scenario.
This is why nobody can touch me these days when it comes to performance.
With the stock at $8.34, I sold 150 contracts of the 5.50-strike weekly series expiring on Black Friday, Nov. 29. The contracts fetched $7 apiece or $945 with cash margin requirements being $9,600. The nominal return is almost 10% with a holding period of just 2.8 weeks. The weekly return comes to 3.51%. Keep in mind that I earn this return even if the stock should lose a full one-third of its value between now and then.
I made the investment discovery of the ages in August of 2011 and I'm absolutely cleaning house as are those fortunate enough to be my clients.
Icahn had a privileged life early on that I can't even imagine. He was born and raised in Far Rockaway, Queens and went to Far Rockaway High School. Far Rockaway is one of the wealthiest communities in the land. He graduated from Princeton at age 21. I sure doesn't sound like he had to work 28 hours a week to put himself through school like I did.
His degree was in Philosophy of all things. He then tried medical school but dropped out after two years to join the army. His first job was as a stockbroker. I wonder how he got a job as a broker with that background?
He also started his own brokerage firm when he was 31 dealing primarily in options. But since the first options exchange didn't even open until he was 36, he was dealing in the shady world of non-standard puts and calls. I wonder how he was able to withstand the huge bear markets of 1970-71 and the even worse bear of 1973-74 unless he had just enormous wealth somewhere backing him up.
Obviously without his early advantages and the wealth backing him up, he wouldn't be what he is today with a reported $20 billion in wealth.
What percentage is that compared to the total that he has invested? I'll take my 40%-plus returns per year any day over what his overall returns are.
By the way, these megabucks money managers are known as hedge fund managers but really now - where is the hedge? I do a helluva lot more hedging with my superior options investments than do any of these managers.
Icahn got into JCP just north of $15 this summer as did I. But if the stock is still only in the $8 to $9 area at year-end, he will still have paper losses of over 40%n whereas I will be showing PROFITS even at just $8. Now who is the real hedgie between he and I?
Whereas he simply bought the stock in the 15's and held, I was selling naked puts at strikes of $6 and $8 along with a few 10-strikes. I had a huge amount of downside protection which he simply did not. So I repeat - who was the true hedgie between the two of us?
I have a lot of respect for the "dregs of Mexico and Central America." They are invariably hard workers who are forced to leave family and friends behind to come here because the wages are so bad in their home countries. As for "easy pickings," maybe you would like picking fruit in 100-degree heat for the minimum wage if that and few benefits.
Just to get here, most of these Latinos are forced to risk their very lives. Needless to say, my perspective on these people is far far different from yours but of course I live here and know the truth. Thank your lucky stars that you weren't born in say a poor village in Oaxaca, Mexico. How dare you diss those who are only trying to improve their lot.
I live in the most desirable city in the nation factoring in the weather of course. Property values continue to rebound and houses in my neighborhood are now routinely fetching 675K. Mine would sell for close to 700 grand since I just had solar panels installed.
If you have visions of living near where I am, make sure and bring a bulging wallet. 1,373 square feet in an upscale enclave near the LAX airport doesn't come cheap.
Oh yes - one other li9ttle matter of importance. Hedge fund managers these days routinely charge 2% of the amount being managed plus 20% of any profits. My rate is a straight 1% of the amount under advisement and absolutely nothing additional for performance. Even if the likes of Icahn could match my performance which they most certainly can NOT, look at the difference in fees being shelled out.
Carl Icahn invested in JCP at $15 a share and needs for the stock to come all the way back to $15 just to break even. I also invested heavily in the stock in the $15 area but I will be showing profits if the stock is just $7.90 ten weeks hence and i'll have market-beating profits if the stock is $9 or more.
When it comes to superior market strategies, Icahn can't hold a candle to me. Sorry but the truth is the truth.
By the way, what does Carl have in the way of average percentage gains since the end of 2010? I'm currently approaching an average of 45% annual percentage gains in that category.
Icahn of course has the name and the fame while I'm a complete nondescript and unknown but nevertheless I have it all over him when it comes to the little matter of percentage gains.
Another 65 cents on the close and for at least the 32nd consecutive year the minimum range as measured from closing low to closing high will be 23.7% or more.
Can you really be ridiculous enough to think that I somehow suddenly have losses on this portfolio?
I started the year with 250K and at the beginning of last week, I took out 140K in order to fund the new, spectacular double-your-money-in-a-year JCP naked put-writing portfolio. Obviously anything over 110K in this portfolio represents profits and the current valuation is $170,245.
All positions other than the Jan. 10's are currently out of the money and unless JCP collapses anew which is unlikely, I'll be sporting profits on this portfolio before the year is out and I even have a reasonable shot at outperforming the averages with this portfolio.
By the way, is your definition of a loser someone who earns 58% on a flat market in Year 1 and then follows that up with 42% gains in Year 2 and who is currently up by 33% in Year 3? Personally, I would call someone like that a master percentage wealth creator which indeed is what I am these days after having made the investment discovery of the ages in August of 2011.
How can I possibly have any betters when I am the very best percentage wealth creator on the planet? If you don't think my claim is true, perhaps you can name other money managers who in each year 2011, 2012 and 2013 will have increased their portfolios by at least 40% each and every year as I'm in the process of doing?
In 2011, my combined portfolios were up by an astounding 58% in an absolutely flat market. In last year's somewhat better market, I achieved 42% in combined gains and so far in 2013, I am up by 33% and will achieve at least 40% if JCP doesn't do another tank job.
Having substantial downside protection on my covered calls allows me to stay in the position where I currently have 63% gains in less than eight months. Yes - theoretically those that bought the stock and held are doing slightly better; however it would be hard to find many that held all the way without taking some chips off the table.
I'm just delighted to have 189K in profits on a 300K investment.
i only had a moderate tax liability this year as I still had big tax-loss carryforwards at the end of 2011. The 2013 taxes will also be moderate since most of the gains are from BIDU where the long call options don't expire until January of 2015. I will, however have a lot more in consulting income in 2013 than 2012 when I was just getting started.