Investor's Opinion

Portfolio Update

Published: 2011-10-29 07:28:00 EDT by Unknown

Since my last post I have made trades with AAPL, CPLP, DWA, and GLD. I have also continued to add cash to my account as said I would. This is how my portfolio stands at this time.

On October 11th, I had a BTO call option position for AAPL at the 450$ strike price. Three days later I rolled the position to the higher strike price of 485$. This profited me a net of ~95$ or 20%. The gross profit was ~375$ or 79%. This means that I am currently playing with "the houses" money as a gambler would say. This is good for me because the value of that option is now down ~98% with 22 days until expiration. I am still bullish on AAPL, but would not be surprised if I would have to roll this option at a loss just to get a little more time to see my target realized since "Black Friday" comes after this positions expiration.

On October 20th, I BTO 3 CPLP call options for the 7.50$ strike price. I did this because it broke through it's most recent resistance level of 7$. I was expecting a little more upside with the breakout, but since then it has only been trading within pennies of this resistance/support level. I am thinking that it will pull back some, but afterwards power through to at least the next resistance level of $8. I also BTO this position with 5 months until expiration, so I have time on my side.

On October 27th, I BTO two more call options. The first was a for DWA at the 25$ strike price. I BTO this position because it broke a current downward trend line almost two weeks before, and then on the 27th broke above it's recent 20$ resistance level. This position also looks like it will be pulling back some before going up much higher. Fortunately for me, this position is also good until March of 2012, so I have time to wait and see.

The other call option position I BTO on the 27th was for GLD at the 180$ strike price. I BTO this position because it had already broke above the 165$ resistance level it gaped under back in late September and just finished filling the gap created back between September 22nd and 23rd. Gold has a pretty good run during the winter holidays so I believe GLD should be going up in the next few months. I only have up until the December expiration, so am looking for profit by "Black Friday".

In other news, my CIM stock position just recently paid me for holding on to it. Not a lot but, it does help to own dividend paying stocks. It has broken a recent downward trending line but still has one more and a resistance level it failed to break through back in August. That being said, my put option I STO looks like it will expire worthless. If that is the case, I still get to keep my 20$ premium I collected for selling the option and my 250$ that is securing it.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page.

AAPL - Apple, Inc.
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
GLD - SPDR Gold Shares (ETF)
"rolled" - (rolling) - to sell-to-close one position and buy-to-open another position in the same group of options to take profit or extend risk.
STO - sell-to-open / sold-to-open

Labels: call options, cash-secured puts, trade terminology in use

Updated: 2011-10-29 07:28:44 EDT