Portfolio Update: Still Need To Work On Patience

As I am writing this I am dealing with a little bit of sellers remorse. A little over a month ago I wrote that I was comfortable with holding on to a call option I bought against Capital Product Partners, LLP (CPLP). In the week that just past, I was becoming exceedingly uncomfortable with my decision. As a result of the discomfort I progressively lowered my limit price to sell the option. In my mind I was attempting to capture as much of my remaining principle as I could. Anyway, today the sale of the call option finally triggered, but at a price less than 50% of the initial principle. The net result was a loss of a fraction over 60% ($91.21). What followed after the sale was that the option price continued to rise to a point at which I could have reduced my loss to about 45%. As I analyze the charts, I am seeing that I should be happy with what I was able to keep. However, I won't know for sure until September 17th.

In other news, I successfully sold a July2010 $19 Call option against my shares of the iShares Silver Trust ETF (SLV). My usual difficulty with selling against my shares is that in order for me to make money off of every share I have to sell an option at the next highest strike price from my most expensive share. I see this as a problem since SLV has a swing difference of up to $5, a 52-week high of $19.44 and I have 20 shares that were purchased above $18. This doesn't give me much room. I am actually looking forward to getting called out of my position of SLV so that I can cash in on my capital gains finally.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

Portfolio Update: Captured Profits

It has been about a week since my last post. Since then, the equity markets have pulled back and returned back to where they were. The price movement of the last couple days and the short term technicals suggest the potential for another bull rally. However, the long term technicals are not in place yet.

Despite all this, I had a trade execute today. Unexpectedly, the United States Natural Gas Fund ETF (UNG) had a break-out day. As a result of this break-out day, my order to sell was triggered and I locked in more than my minimum desired gains. Unfortunately, this also means that I gave up on significant additional gains as the ETF closed even higher.

The good news is still better to me. I locked in more than 25% gains on this trade. Moving on to the next trade as these markets prepare to rally higher. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com