As I write (market just opened 14/1/2015), the S@P500 is down 20 point and trading very near 2000. The covered calls we sold yesterday should be profitable but may not yet be at 50%. It is imperative we leave our automatic orders in (Good Till Cancelled) as they take the greed out of our trading. The portfolio is going to buy 100 shares of the following stocks as we will be selling covered calls for income. If you don’t have the capital for 100 shares of each underlying, you can take a small position in each so therefore you will be solely concentrating on stock. Ok the list as follows is
(NYSE:BUD) is holding up very well in the downward movement in the market although the market is making a bit of a comeback. I
I’m going to sell a covered call for (NYSE:BUD) in February for $1.10. Immediately put in a GTC order to buy back your call for $0.55. I’ve also bumped up my shares in certain underlyings to 100 to take advantage of our covered call strategies. I’m going to wait on selling covered calls for the moment until the market turns back up.
I make it we are now $130,000 invested in equities even though one of those equities is (NYSE:CVX) which will be more effected by oil than by the general direction of the stock market. I don’t want to go over $180,000 for equities as 18% is my max for any asset class
Speaking of asset classes, we will be investing heavily into the precious metals sector pretty soon. Mining stocks have really rallied hard since the start of the year so the bottom may be in. Even if the bottom is not in, the risk definitely justifies the reward at this stage as we may be very close to a bottom ( I can’t see Gold under $1,000 for long if it goes there)
This portfolio is entitled the 1% portfolio to keep us reminded to keep positions small. Our aim when we are fully invested is to have 100 positions in this portfolio.. (on average $10k per position)
Here are the account balances