Thursday Day here, another week has passed, and very little seems to have changed. The US lawmakers are still squabbling over the debt ceiling, the US (and global?) economy still seems buggered (initial jobless claims rising 10K this week, German manufacturing unexpectadly fell), and the European debt crises still rages.
Interest rates in the US must start moving higher. But 'must' doesn't include a time frame. This debt situation is out of control, lending to any government, especially the world's most indebted for next to nothing makes no sense for anyone. But that being said, this economy is not well, and will not be for a long time to come. Any rise in interest rates will break any sort of legs it has to stand on its own. Something to think about anyway.
As for our portfolio, no new trades or recomendations. Just happy to sit on our positions for the time being. If SLW gets hit a little harder, may add to our position (in small chunks).
Account Details
Cash = $86,470
Assets
--> XIV -- 1000*18.09 = 18,090 [1000@17.50=17,500]
--> RIMM -- 200*27.10 = 5,420 [ 200@28.75= 5,750]
--> SLW -- 100*38.74 = 3,874 [ 100@33.00= 3,300]
= 18,090 + 5,420 + 3,874
= $27,384
Liabilities
--> OCT'11 SLW $35 PUTS = 30*1.61 = 4,830
--> JAN'12 LULU $40 PUTS = 20*1.85 = 3,700
= 4,830 + 3,700
= $8,530
Total
= 86,470 + 27,384 - 8,530
= $105,324
Another good week for us, as our portfolio was up more than 2%. We are now sitting on a $5,324 gain (5.32%) in just over one quarter. We need to get more exposure to the metals, but I haven't decided on what the best angle is. We could maybe roll our SLV options out to a further out month at a higher strike price, and continue to collect premiums. Or we could buy some call options, or stocks outright. A 5% return is great over a quarter, but when these metals go, 5% is going to be for chumps.
Thursday, July 21, 2011
Thursday, July 14, 2011
Thursday Day here, just a quick update.
We have been filled on our position for XIV. My stock tracker doesn't seem to be working at the moment, so I'm not sure the exact date we were filled, but lets write it down as 1000 shares @ $17.50.
Silver has made a bit of a moonshot on the comments by big Ben, and the rest of the market seems to be still trying to digest the news, good or bad? Who knows, but it'll probably take stocks higher as more and more cash hits the floor and the dollar starts to slide.
All good things for us. The only thing we need to remember is we do have two positions tied to the consumer, and as fewer and fewer people have money to spend, there will be a time to exit these trades. Not ready to pull the plug yet, but just can't forget to constantly re-evaluate things.
And on a side note, LULU underwent a 2/1 stock split, cutting share prices in half. This means we now have twice as many options contracts, but their strike price is also halved to $40.
Updated Account Details
Account Details
Cash= $103,970 - 17,500= 86,470
Assets
-->XIV -- 1000 * 16.27 = 16,270 [1000@17.50=17,500]
-->RIMM -- 200 * 27.40 = 5,480 [ 200@28.75= 5,750]
-->SLW -- 100 * 37.93 = 3,793 [ 100@33.00= 3,300]
= 16,270 + 5,480 + 3,793
= 25,543
Liabilities
--OCT'11 SLW $35 Puts = 30*1.90 = 5,700
--JAN'12 LULU $40 Puts = 20*1.90 = 3,800
= 5,700 + 3,800
= $9,500
Total
= 86,470 + 25,543 - 9,500
= $102,513
We are showing our biggest gain (ha, not huge) so far at 2.513%. Our options are moving in the right direction, and now that we have a position in XIV, we should be able to sit on that and let it take our portfolio higher.
SLV has been on a tear, helping our SLW position as well. LULU has held up well, but XIV and RIMM are underwater slightly. XIV is a long term play, and something that appears to fluctuate short term, but consistently make new highs over the medium-longer term. I'm glad we didn't chase it, and let the market come back to our bid. RIMM is the other position slightly under water. Again, this is just a valuation play. The company is still making money, lots of it. There's takeover potential that nobody is talking about. And I believe there's more upside potential than downside. However I will keep an eye on the situation, and if we need to sell and cut our losses, so be it.
We have been filled on our position for XIV. My stock tracker doesn't seem to be working at the moment, so I'm not sure the exact date we were filled, but lets write it down as 1000 shares @ $17.50.
Silver has made a bit of a moonshot on the comments by big Ben, and the rest of the market seems to be still trying to digest the news, good or bad? Who knows, but it'll probably take stocks higher as more and more cash hits the floor and the dollar starts to slide.
All good things for us. The only thing we need to remember is we do have two positions tied to the consumer, and as fewer and fewer people have money to spend, there will be a time to exit these trades. Not ready to pull the plug yet, but just can't forget to constantly re-evaluate things.
And on a side note, LULU underwent a 2/1 stock split, cutting share prices in half. This means we now have twice as many options contracts, but their strike price is also halved to $40.
Updated Account Details
Account Details
Cash= $103,970 - 17,500= 86,470
Assets
-->XIV -- 1000 * 16.27 = 16,270 [1000@17.50=17,500]
-->RIMM -- 200 * 27.40 = 5,480 [ 200@28.75= 5,750]
-->SLW -- 100 * 37.93 = 3,793 [ 100@33.00= 3,300]
= 16,270 + 5,480 + 3,793
= 25,543
Liabilities
--OCT'11 SLW $35 Puts = 30*1.90 = 5,700
--JAN'12 LULU $40 Puts = 20*1.90 = 3,800
= 5,700 + 3,800
= $9,500
Total
= 86,470 + 25,543 - 9,500
= $102,513
We are showing our biggest gain (ha, not huge) so far at 2.513%. Our options are moving in the right direction, and now that we have a position in XIV, we should be able to sit on that and let it take our portfolio higher.
SLV has been on a tear, helping our SLW position as well. LULU has held up well, but XIV and RIMM are underwater slightly. XIV is a long term play, and something that appears to fluctuate short term, but consistently make new highs over the medium-longer term. I'm glad we didn't chase it, and let the market come back to our bid. RIMM is the other position slightly under water. Again, this is just a valuation play. The company is still making money, lots of it. There's takeover potential that nobody is talking about. And I believe there's more upside potential than downside. However I will keep an eye on the situation, and if we need to sell and cut our losses, so be it.
Wednesday, July 6, 2011
Updates on the trades recomended last week.
XIV - Has traded down to our bid level, so we have been left unfilled. No new guidance, happy to leave our bid at $17.50 for now. This may change tho.
RIMM - Filled the following day (June 30) at $28.75. We now have 200 shares, and will look to ride this higher RIMM pushes through it's troubles.
SLW - Again, filled the following day (June 30) at $33.00. Just a small position really, but hopefully this is something we can add to over the next little while. I will be hard pressed to sell this position, it'll be more of a buy and hold, and buy some more.
Account Details
Cash = 113,020 - 5,750 [200*28.75] - 3,300 [100*33.00] = $103,970
Assets
-->RIMM -- 200 * 28.06 = 5,612 -- [200@28.75=5,750]
-->SLW-- 100 * 36.10 = 3,610 -- [100@33.00=3,300]
= 5612 + 3,610 = $9,222
Liabilities
--OCT'11 SLW $35 Puts = 30*270 = 8,100
--JAN'12 LULU $80 Puts = 10*3.70 = 3,700; 8,100 + 3,700 = $11,800
Total = 103,970 + 9,222 - 11,800 = $101,392
Both SLV and LULU had great weeks, pushing our options contracts into positive territory. Our purchass of SLW shares has proved (short term) to be great timing. RIMM has droped slightly, but not enough to make a meaningful impact. We are showing our first profit in a while, currently at $1,392 for a 1.39% gain since fund inception on Wednesday April 20, 2011 (~2.5 months ago).
XIV - Has traded down to our bid level, so we have been left unfilled. No new guidance, happy to leave our bid at $17.50 for now. This may change tho.
RIMM - Filled the following day (June 30) at $28.75. We now have 200 shares, and will look to ride this higher RIMM pushes through it's troubles.
SLW - Again, filled the following day (June 30) at $33.00. Just a small position really, but hopefully this is something we can add to over the next little while. I will be hard pressed to sell this position, it'll be more of a buy and hold, and buy some more.
Account Details
Cash = 113,020 - 5,750 [200*28.75] - 3,300 [100*33.00] = $103,970
Assets
-->RIMM -- 200 * 28.06 = 5,612 -- [200@28.75=5,750]
-->SLW-- 100 * 36.10 = 3,610 -- [100@33.00=3,300]
= 5612 + 3,610 = $9,222
Liabilities
--OCT'11 SLW $35 Puts = 30*270 = 8,100
--JAN'12 LULU $80 Puts = 10*3.70 = 3,700; 8,100 + 3,700 = $11,800
Total = 103,970 + 9,222 - 11,800 = $101,392
Both SLV and LULU had great weeks, pushing our options contracts into positive territory. Our purchass of SLW shares has proved (short term) to be great timing. RIMM has droped slightly, but not enough to make a meaningful impact. We are showing our first profit in a while, currently at $1,392 for a 1.39% gain since fund inception on Wednesday April 20, 2011 (~2.5 months ago).
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