This has been a rough one.
On the bright side, we bounced back $2,000 today but, on the not so bright side, our WSS Portfolio Value is down to $95,197, not where we wanted to be on our second option expiration day. I played this portfolio much too bearish for the recent run and I have real trouble taking up bullish positions that I don’t have any faith in in a portfolio that is not meant to be adjusted very often. We actually have $101,341 in cash (up $8,000 from our last update) and we have just $19,130 worth of long positions but we sold what are now $25,298 worth of short contracts and not many of them are doing us the courtesy of expiring worthless.
Our real Achiles heel is our reliance on the PSQs to protect us. The PSQ Jan $50s are down 55%, a loss of $1,695 and that imbalance is the difference between a winning and losing portfolio as a bullish selection there would be up the same or more and we’d be almost perfectly even and not at all concerned. Keep in mind, this portfolio is not designed to make money, this portfolio is designed to draw an income of $2,500 a month. As long as we keep selling premium and as long as we get lucky one day and collect it, we’re right on track.
So what we are worried about, going over the current positions, is anything where we feel we may have to dig into our pockets. That is the main thing we want to avoid:
| Description | Price Paid | Last Price | Qty | Market Value | Margin Req. | Profit Loss | % |
|---|---|---|---|---|---|---|---|
| AIG CALL 40 Oct 09 | $6.30 | $4.68 | -1 | $468.00 | $1,137.15 | $162.00 | 25.71% |
| Rolling to Nov $44 call, now $4.90 | |||||||
| AMZN CALL 90 Oct 09 | $3.60 | $5.90 | -10 | $5,900.00 | $20,301.50 | -$2,300.00 | -63.89% |
| AMZN CALL 95 Nov 09 | $5.90 | $6.35 | -10 | $6,350.00 | $20,751.50 | -$450.00 | -7.63% |
| AMZN PUT 85 Nov 09 | $2.76 | $2.00 | -10 | $2,000.00 | $10,500.00 | $760.00 | 27.54% |
| Rolling Oct $90 calls to Nov $95 calls (20 total) | |||||||
| BAC CALL 10 Jan 11 | $8.60 | $8.95 | 5 | $4,475.00 | $0.00 | $175.00 | 4.07% |
| BAC CALL 17 Oct 09 | $1.27 | $1.14 | -5 | $570.00 | $1,927.50 | $65.00 | 10.24% |
| BAC PUT 17 Oct 09 | $0.97 | $0.08 | -5 | $40.00 | $890.00 | $445.00 | 91.75% |
| BAC PUT 20 Jan 11 | $5.45 | $5.05 | 5 | $2,525.00 | $0.00 | -$200.00 | -7.34% |
| Rolling to Nov $17.50 puts and calls, now $2.15 | |||||||
| C CALL 4 Mar 10 | $1.30 | $1.04 | 10 | $1,040.00 | $0.00 | -$260.00 | -20.00% |
| C PUT 4 Dec 09 | $0.46 | $0.12 | -10 | $120.00 | $520.00 | $340.00 | 73.91% |
| C PUT 5 Oct 09 | $0.52 | $0.26 | -5 | $130.00 | $486.25 | $130.00 | 50.00% |
| Rolling all puts to Nov $5 puts (.45), rolling calls to 20 2011 $5 calls ($1.05). No call selling yet. | |||||||
| CROX CALL 4 Mar 10 | $3.70 | $2.99 | 5 | $1,495.00 | $0.00 | -$355.00 | -19.19% |
| CROX CALL 7 Oct 09 | $0.50 | $0.75 | -5 | $375.00 | $975.00 | -$125.00 | -50.00% |
| Description | Price Paid | Last Price | Qty | Market Value | Margin Req. | Profit Loss | % |
|---|---|---|---|---|---|---|---|
| CROX PUT 5 Mar 10 | $0.70 | $0.45 | 5 | $225.00 | $0.00 | -$125.00 | -35.71% |
| CROX PUT 7 Oct 09 | $0.90 | $0.05 | -5 | $25.00 | $375.00 | $425.00 | 94.44% |
| Rolling to Nov $8 puts and calls, now $1.70 | |||||||
| FAZ PUT 19 Oct 09 | $1.65 | $1.15 | -4 | $460.00 | $1,532.80 | $200.00 | 30.30% |
| Buying back for $1 or less, otherwise roll to 5 sold Nov $16 puts, now $1.10. | |||||||
| GE CALL 16 Oct 09 | $1.29 | $0.91 | -20 | $1,820.00 | $6,857.00 | $760.00 | 29.46% |
GE PUT 16… |
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