Since my last portfolio update, I made a few trades. But in addition to that I followed through with adding funds to my trading account. In fact, I set up a weekly transfer of funds into my trading account. I have this as part of my budget now.
The first thing I have to report about my trades is that the call option I STO against my position in DWA expired worthless. That means that I get to keep the $34.37 premium I received. I am currently planning my next move with DWA.
My next trade was to BTO a put option against RIMM for Nov 19 2011 at the $23 strike price. This trade was STC 6 trading days later and profited $10.75, or ~5%.
Two days later I BTO two put options against RIMM for Oct 22 2011 at the $20 strike price. This trade was STC 3 trading days later and profited $49.39, or ~23%.
I currently have 4 open or pending orders, 3 open stock positions, and 1 open option position. My plan is to wait to see if my 1 open option position expires worthless or has me put into CIM for another 100 shares at $2.50 a share. My 3 open stock positions are all in the red still, but there is past performance that suggest the possibility for eventual turn around. My 4 open or pending orders are for a position of call options on AAPL, a position of put options on RIMM, a position of call options on CIM, and a position of a call option on CPLP. I am bullish on AAPL, bearish on RIMM, bullish on CIM, and Bullish on CPLP.
That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple, Inc
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation, Inc.
RIMM - Research In Motion, LTD
STC - sell-to-close / sold-to-closeSTO - sell-to-open / sold-to-open
Tuesday, October 11, 2011
Again, Why Politicians Should Take a Pay Cut.
The following article from Yahoo! News reflects my thoughts in the article I posted back in August. ( http://investorsopinion.blogspot.com/2011/08/august-2011-budget-bill-where-us.html )
Yahoo! News
Yahoo! News
Sunday, August 21, 2011
Portfolio Update
Since my last portfolio update, I've made one change. In my last portfolio update, I stated that I bought 3 puts against DWA and that the trick was going to be knowing when to get out. Well, only days later did I get out. The result was a meager profit of just under 25%. Other than that, the only other thing to report is that I collected a dividend on my CPLP position.
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
DWA - Dreamworks Animation SKG
Monday, August 8, 2011
August 2011 Budget Bill: Where the US Government Went Wrong
Once again the US politicians prove that they don't have a clue about, or an interest, in the greater good. Just like with the Health Care Bill, this Budget Bill is tossed together with little intelligent thought or understanding of governments role. If the US politicians truly cared about balancing a budget and creating jobs, they would have agreed to a bill that would have done that.
The first step in balancing the budget would have been a show of good faith from the politicians themselves. They should have agreed to a deep cut in their own salaries. I say 100,000$ since I believe that they all have their own businesses that they run and in no way need the US public funding them. Public service shouldn't be for their own capital gain. It would only cut the budget by 54.8 million dollars, but it would be a step in the right direction.
The second step would have been to come to terms with an acceptable flat tax for all individuals with tax reimbursements for those have an imbalance in their income to the average cost of living for the area they live in. What this means is that I would agree to a non-refundable 15% tax rate for everyone from the millionaire business owners and investors, all the way down to the individuals that are Just Over Broke (at the poverty line). Only those that earn less than the average cost of living in their area would get a tax reimbursement after filing their taxes. But that reimbursement would only cover the difference of their after tax income to the average cost of living amount for their area, and max out at the 15% tax rate that they paid, or should have paid through out the year.
Third, supply tax incentives to businesses. For instance, if a company increases their number of US based employees through out the rest of the year, reduce their tax liability. Isn't it better to collect from the working public? (Oops, we just slipped into job creation.) Also, increase the tax penalty on US companies that outsource work to other countries. Nothing outrageous. Just enough to get them to at least think about keeping more jobs at home. Increase the tax on imports. Again, nothing outrageous. Just enough to get them to look into local companies to produce the goods. What all of these numbers are would be best asked for from a panel of economists majors.
Fourth, reform the government agencies. Put quotas in place to achieve better performance for the pay that the directors are receiving. This would set a benchmark that would cause the private sector to re-evaluate the salaries that they offer their executives. And although this may be too late to the party, for all the companies that are still holding on to the bail out money they receive three years ago, start leaning on them to pay it back, by getting their executives to take temporary pay cuts so that bailout can be paid back. Especially if they are the same ones that were there before 2008.
Lastly, to increase the number of jobs and lessen the dependency on foreign oil, actually work on funding the U.S. infrastructure. That means solar, wind, and even tidal generated power. Use U.S. based manufactures to build and assemble the generation units and higher U.S. citizens to build, assemble, install and maintain the devices.
I have several more ideas, but these alone I believe will actually produce a shocking change in economy. I would really like for someone to show me how I am wrong. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
The first step in balancing the budget would have been a show of good faith from the politicians themselves. They should have agreed to a deep cut in their own salaries. I say 100,000$ since I believe that they all have their own businesses that they run and in no way need the US public funding them. Public service shouldn't be for their own capital gain. It would only cut the budget by 54.8 million dollars, but it would be a step in the right direction.
The second step would have been to come to terms with an acceptable flat tax for all individuals with tax reimbursements for those have an imbalance in their income to the average cost of living for the area they live in. What this means is that I would agree to a non-refundable 15% tax rate for everyone from the millionaire business owners and investors, all the way down to the individuals that are Just Over Broke (at the poverty line). Only those that earn less than the average cost of living in their area would get a tax reimbursement after filing their taxes. But that reimbursement would only cover the difference of their after tax income to the average cost of living amount for their area, and max out at the 15% tax rate that they paid, or should have paid through out the year.
Third, supply tax incentives to businesses. For instance, if a company increases their number of US based employees through out the rest of the year, reduce their tax liability. Isn't it better to collect from the working public? (Oops, we just slipped into job creation.) Also, increase the tax penalty on US companies that outsource work to other countries. Nothing outrageous. Just enough to get them to at least think about keeping more jobs at home. Increase the tax on imports. Again, nothing outrageous. Just enough to get them to look into local companies to produce the goods. What all of these numbers are would be best asked for from a panel of economists majors.
Fourth, reform the government agencies. Put quotas in place to achieve better performance for the pay that the directors are receiving. This would set a benchmark that would cause the private sector to re-evaluate the salaries that they offer their executives. And although this may be too late to the party, for all the companies that are still holding on to the bail out money they receive three years ago, start leaning on them to pay it back, by getting their executives to take temporary pay cuts so that bailout can be paid back. Especially if they are the same ones that were there before 2008.
Lastly, to increase the number of jobs and lessen the dependency on foreign oil, actually work on funding the U.S. infrastructure. That means solar, wind, and even tidal generated power. Use U.S. based manufactures to build and assemble the generation units and higher U.S. citizens to build, assemble, install and maintain the devices.
I have several more ideas, but these alone I believe will actually produce a shocking change in economy. I would really like for someone to show me how I am wrong. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Portfolio Update
Last week was an absolutely terrible week for my portfolio, and this week isn't looking any better. Being as heavily invested in the market as I am, my portfolio is taking a serious hit. My direct equity positions are now down between 27 and 51%. The saving grace to my portfolio is that I made a few trending option plays that are hedging my losses.
Since May 2011, I have had a 30$ Call option against my DWA shares set to expire in September 2011. On the Friday of last week, I bought 3 17.50$ Put options for DWA and I am thankful that I did. With my equity position down over 37%, the Put options are shaving about 2% from that and will exponentially shave more points off of that percentage as the market and DWA gets hammered. It is just a matter of getting out at the right time since they will expire in December 2011.
Additionally, today I had a 2.50$ Put option sold against my cash for an additional position in CIM. The option is set to expire in December 2011 and is only slightly below the current market value of 2.85$. With the coming weeks I will be allocating more cash to my trading account in preparation for purchasing shares in some really good companies that are being beaten down along with everything else. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
DWA - Dreamworks Animation SKG
Since May 2011, I have had a 30$ Call option against my DWA shares set to expire in September 2011. On the Friday of last week, I bought 3 17.50$ Put options for DWA and I am thankful that I did. With my equity position down over 37%, the Put options are shaving about 2% from that and will exponentially shave more points off of that percentage as the market and DWA gets hammered. It is just a matter of getting out at the right time since they will expire in December 2011.
Additionally, today I had a 2.50$ Put option sold against my cash for an additional position in CIM. The option is set to expire in December 2011 and is only slightly below the current market value of 2.85$. With the coming weeks I will be allocating more cash to my trading account in preparation for purchasing shares in some really good companies that are being beaten down along with everything else. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
DWA - Dreamworks Animation SKG
Sunday, July 17, 2011
Portfolio Update
It has been almost a full month since my last post and option expiration has come and gone. Nothing has changed in my portfolio other than the value of my positions. Currently all but one of my positions is running at a negative capital value. This one exception is a covered call I have on my shares of DWA.
The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.
My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.
The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.
My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.
The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
Sunday, June 19, 2011
Portfolio Update: Put Exercised
As of this post, the weekend past was option expiration and my CIM put options for the 4$ strike was exercised against my cash. This put's me in at a 55 cent per share loss, less that cost of the premium that I collected for the option. Although this is an initial negative, I am satisfied with the result. The result being that my total position is now 400 shares and I can adjust my option order for the 4.50$ December calls from 1 contract to 4 contracts. I will also be increasing my limit for the STO order to 25 cents per contract share which is a net of about 92$ if it gets purchased. Not to mention I get to hold onto an expected 56$ after the next dividend payout between now and December. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open
CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open
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