We are starting a new $100K Portfolio this weekend.
The new portfolio is going to be aimed at drawing an income of $2,500 per month and we’re going to be running a live, virtual portfolio for members as an experiment which, if it goes well, will lead to other portfolios going live. The $100KP is a low-touch portfolio, looking to stay well hedged and making most if it’s money by selling options and dividends. It’s so low touch, that we haven’t made a change in 2 weeks as Aug 8th was the last update!
As of August 8th, we had unrealized gains of $6,690 and a cash gain of $12,291 over the first 4 months. Today I am simply making notes on positions that need to be changed today on options expiration day. We’ll do a full review over the weekend:
GE: Will be called away at $11. GE will be in the new portfolio.
PGF has Sept $12 calls and Sept $13 puts and those are on track to be called away. Likely in the new portfolio.
DBC is a leap and the Aug $21 calls should be rolled across to Sept (even) and 2011 $15s rolled to Jan $21s at $2.60, taking $6,000 off the table and leaving a bearish commoditiy spread.
UNG: Jan $9s will be in the new portfolio. Aug $14 puts are worthless and calls can stay naked.
UYG: Will be called away at $4. Will be in the new portfolio and Aug $4s ($1.35) can be rolled to Dec $5 puts and calls ($1.50).
STI: Will be called away at $15. No longer interested.
KEY: Will be called away at $5. Will be in new portfolio and Aug $5s ($1.40)can be rolled to Dec $6 puts and calls ($1.90)
USB: Will be called away at $18. Undecided in new portfolio but calls ($4.10) can be rolled to Dec $22 puts and calls even.
C: Sept $3 calls deep in the money, position can be closed as callers have no premium. Will be in new portfolio.
Since the purpose of the new portfolio is to generate an income, many of our dividend plays will carry forward:
LYG: Jan $7.50 calls sold, no change. Will be in new portfolio.
TNK: Covered with Nov $10s, no change. Will be in new portfolio.
PGH: Covered with Jan $7.50s, no change. Will be in new portoflio.
KMP: Covered with various hedges, no change. Undecided.
CAT: Covered with Jan $40s, no change. Undecided.
FXP: Sept $10 puts came…
