I am continuing my plan of selling options against my cash and against stocks that I own. Today, an STO order for the CPLP Feb 19 2011 $10.00 call against my shares of CPLP executed today. I chose to sell an option against my position because I have a significant gain in the stock and believe that it will not stay above this value past the expiration date I choose. If it does, however, I will gladly sell a put option against the cash that I collect in order to get back in if it drops back below the $10 strike price. I, however, believe that it will drop below the $10 strike before the February expiration. In which case, I will keep the premium and the dividend paying shares. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
STO - sell-to-open / sold-to-open
Thursday, January 6, 2011
Tuesday, January 4, 2011
Year In Review and Looking Forward
With a new year should come a moment of reflection on ones past and contemplation on the future. The same should be said about ones investing. In light of that, here is my year in review and my plan for the coming year.
Last year I opened and closed a total of 28 positions. Out of the 28 positions, 15 of them resulted in profits and 13 of them resulted in loses. This tells me that I am just barely better than 50% right. Unfortunately, when my choices are bad, they are really bad. My 15 profitable choices only earned me $764.25, while my 13 losers has cost me $1,538.68. That results in a net loss of $774.43. And on top of that, some of it cannot be written off because they qualify as wash-sales.
The reasons vary for my bad performance. Some were because of poor analysis, some because I got greedy and didn't take the profit when I had the chance; some because I didn't set my entries or stops properly. This year I have to pick a plan and stick with it. As a result of my getting out of debt last year, I now have extra capital I can devote to my portfolio.
The plan for this year is as follows:
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
BTO - bought-to-open / buy-to-open
DWA - Dreamworks Animation SKG, Inc.
Last year I opened and closed a total of 28 positions. Out of the 28 positions, 15 of them resulted in profits and 13 of them resulted in loses. This tells me that I am just barely better than 50% right. Unfortunately, when my choices are bad, they are really bad. My 15 profitable choices only earned me $764.25, while my 13 losers has cost me $1,538.68. That results in a net loss of $774.43. And on top of that, some of it cannot be written off because they qualify as wash-sales.
The reasons vary for my bad performance. Some were because of poor analysis, some because I got greedy and didn't take the profit when I had the chance; some because I didn't set my entries or stops properly. This year I have to pick a plan and stick with it. As a result of my getting out of debt last year, I now have extra capital I can devote to my portfolio.
The plan for this year is as follows:
- Only pick from stocks that have options; being a dividend paying stock is a plus.
- Sell cash secured put options for the stocks that I would like to own.
- For stocks I own, sell call options against them at a price higher than I BTO.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
BTO - bought-to-open / buy-to-open
DWA - Dreamworks Animation SKG, Inc.
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