Tuesday, April 19, 2011

4/19 Daily Summary

My portfolio allocation for this month is working well for me, I've noticed some recent market activity and the market conditions on IBD have changed for "up trend under pressure", so I'd say let's keep an eye on this recent market activity. So far I have not pulled the plug on any of my positions, will only close them out if the market conditions worsen. Here is the break-down of what I have on this portfolio:

-Gold: This position is a Cash-secured put on GLD, sold the May 140 Put. These will eventually get assigned and I plan on holding a portion of my portfolio in Gold for a while. Bottom line I do not trust the current market and government's approach of printing money to pay for their own debt.

- Cash Secured Put: These are stocks I studied in the past down-cycles and they usually go down less than the market when we have a sell off. They're also stocks I feel won't go away any time soon.
PG : Sold May 62.5 PUT
KO: Sold May 67.5 Put
WMT: Sold May 52.5 Put

-Synthetic Covered call: In addition to the stocks I selected to play cash secured puts, I''m using this section of my portfolio to play break outs on the IBD top 50 stocks. IBD publishes a really good list of stocks with strong sales and earnings, they maintain a good grip on these stocks, their accumulation ratio, fundamentals, etc. Good way for me to stay plugged in without having to do all the research on my own.
WMT: Long Jan/11 45 Call, short May 52.5 Call
PG: Long Jan/11 50 Call, Short May 62.5 Call
ORCL: Long Jan/11 25 Call, Short May 34 call (break out play called on IBD)
SOHU: Long Jan/11 65 Call, Short May 100 call (break out play called on IBD)


No comments: