Portfolio Update

In my last post I had spoke of putting in an order to sell a Call option against my position of the iShares Silver Trust ETF (SLV). That order never got executed because the value of my shares never went high enough to trigger the contingency. That is fine as I am just moving it over to the next months Call option.

Since then, however, I have been manually updating a stop order against my shares of EV Energy Partners, LP (EVEP). Today that stop was triggered and I captured a profit of a little under 32% including cost of commissions and fees. It is m opinion that EVEP will be pulling back between $32.50 and $30 before it . This particular opinion depends on it actually closing below a secondary trend line with an upcoming intersection of $34.52. I have this contingency in my opinion because for this triggered stop I used low of the of the "out of the ordinary" sell off and rebound in the stock back on the 6th of May as the starting point of the trend. In all honesty, I probably shouldn't have as such behavior is an anomaly and the low of May 21st was a lot more reasonable. However, profit is profit.

In addition to this profit taking, I am also taking the opinion that Capital Product Partners, LP (CPLP) is over bought again and will be repeating it's basing behavior. This time I believe it will base down around the $7 dollar range. As a result of my opinion I purchased the CPLP December 2010 $7.50 Put option. I choose this option because the December 2010 $10 Put is too expensive for my current cleared capital, the September 2010 $10 Put is to close in time, and none of the current $10 Call options will give me a satisfactory premium without risking the loss of the stock below my cost basis. I am also setting it up to Sell-To-Close (STC) after the underling stock drops below $7.50 I may be "leaving some money on the table", but I rather not be greedy. After all, there is always another trade to be made. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

Portfolio Update: Order Executed

Today the order I had to buy back the Call option against my iShares Silver Trust ETF shares was executed at the dirt cheap price of $0.01 per contract share plus $0.65 in commission. This results in a profit of $26.74. Definitely not a lot, but definitely better than bank interest.

To continue with the objective of trying to at least do better than bank interest, I have entered an order for a Contingency Trade. When the last trade price for SLV breaks over $18.62, I will Sell-To-Open a SLV19AUG10 Call against my SLV shares at a contract share price of $0.46. The goal is to increase my monthly profit margin from 1.57% to a solid 2% of my average cost basis. I believe this to be a fully obtainable goal. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

Portfolio Update: OTO 50% Executed

Yesterday I posted that I was setting up a One-Triggers-Other order with the Capital Product Partners, LP options. Today, the option I sold against my shares of CPLP was bought to close for a lose to me. That is the first half of the OTO. The second part of the OTO is the order to sell to open the CPLP10Aug10 Call option against my shares of CPLP. The order is to sell at a higher limit value of $0.70 per contract share. Less the cost of commission that is a premium of about $64.39. It is just a matter of waiting to see if it will gain enough value to sell at that price. Because of how far out it is, I will probably have to wait a few weeks. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

Portfolio Update: Change Of Opinion

In my last post I indicated an opinion that the market may not be done pulling back. I still think this is probably true. However, as for Capital Product Partners, LP, I don't think that pull back will happen before this coming option expiration. As a result, I am in danger of having my CPLP stock shares called away from me unless I Buy to Close the option I sold against it.

Unfortunately, the value of the option is now 150% of the value that I sold it at. In order for me to buy it back I have to free up some of the capital I have reserved for purchasing 10 shares of EV Energy Partners, LP. All things considered it was not looking likely that EVEP was going to come down to my desired price.

After canceling my Buy Order on EVEP, I entered a Buy to Close order on my CPLP7.50July10 Call option. While entering it, I set it up as a One-Triggers-Other order so that I will also have a Sell to Open order against my CPLP shares at the next highest available strike price - that is the CPLP10Aug10 Call. In the current week I am expecting CPLP to get as high as $9, maybe more. Being this far out from option expiration of August should provide enough time value to get a decent premium. Also the difference between the strike price of the option and the value I purchased the stock will result in a fairly acceptable profit to off-set the loss of the last trade. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

Portfolio Update: Call Option Sold To Open

On the last day of the week, prior to the Independence Day weekend, I sold a $7.50July2010 Call option against my stock position of Capital Product Partners, LP (CPLP). The first day after the holiday was a slightly bullish day, but the option value did not close any higher. It is still my opinion that the stock will slide before the option expires. However, if it doesn't, I will be seeing a loss in the stock of about $26 which will be balanced out by all of the dividends I've earned so far and the premium I sold the option for. Although I see some bullish potential in CPLP, I am of the opinion that the market may not be done, pulling back just yet.

My current open orders are a Buy to Close order of the CPLP Call Option I sold, as mentioned above, a Buy to Close order of the iShares Silver Trust ETF (SLV) I have owned for a while, a Buy order of 10 more shares of EV Energy Partners, LP (EVEP) at price of $27.54 or less, and a Sell to Close order of my 5 contracts position of Citigroup Inc (C).

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

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