January Portfolio Return – 4.08%

Posted on 19. Jan, 2010 by Founder in Blog

The January portfolio return was once again extremely profitable for our members and marks the 12th consecutive month without ANY losing trades! Again that’s 1 WHOLE YEAR without any losing trades! If you want to start seeing these returns in your own account, SIGN UP HERE FOR A PREMIUM MEMBERSHIP.

Compared to the December portfolio, we had a total return that lower comparatively from December at 4.08% to 5.19%. Clearly we don’t really care if we increase or decrease our monthly returns as long as we hit our 3% profit goal – which we are beating nearly each month. In addition, we showed once again that even in the face of a major market moves higher and extreme volatility, selling options with out P.O.T.S system still produced great profits.

To re-cap this month’s income, let’s look at what we made vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:

DIA 108 CALL – $53/$1,221 = 4.34% Return

DIA 110 CALL – $55/$1,351 = 4.07% Return

IWM 66 CALL - $30/$595 = 5.04% Return

IWM 42 PUT – $18/$419 = 4.29% Return

QQQQ 35 PUT – $6/$382 = 1.57% Return

As we said earlier, we did not have to close out any positions this month at a loss. This just goes to show everyone that by writing options, you are basically forcing the indexes to make dramatic moves in a very short time frame. And since we have positions on BOTH sides of the market (Puts and Calls), you are guaranteed to make money on at least one side of the trade every time – or both sides like we do every month.

With regard to TOTAL INCOME and RETURN, the January portfolio produced $162 of total income (double from last month) after investing just $3,968 in margin. That means we saw a total portfolio return of 4.08% this month. As we usually point out, our calculations assume that you enter just 1 (ONE) contract for each trading alert – i.e. a total of 5 contracts for the month. Those members with a higher capital base should be entering multiple contract positions each week.

***Even if you factor in a 1% comission for the month our return would still produce annualized returns of over 35% per year***

Currently we have a fully invested 2010 February income portfolio and are about to begin THIS WEEK building the March income portfolio. The outlook for both of these portfolios is extremely positive right now as we are still writing options far away from the market’s current price.

Crude Oil Prices Fall On Strong USD

Posted on 15. Jan, 2010 by Founder in Blog

Crude oil prices are falling this afternoon on a very strong move in the USD. Investors often buy commodities during this time of the year such as oil as a hedge against inflation when the dollar weakens and then clearly sell when it when the dollar strengthens. Some analysts we have read reports on expect growth in demand from developing countries such as China will help make up for slower economic recovery here at home.

Per the USO chart above you can all see that it’s still due for more downside in the coming week or so before hitting major support.

Oil Jumps Above $80 On Dollar Fall

Posted on 04. Nov, 2009 by Founder in Blog

Crude oil is on the rise today on the dollar’s fall before the Fed interest rate decision. Benchmark crude for December delivery added 87 cents to $80.47 a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery rose 87 cents to $78.98 on the ICE Futures exchange.

crude oil prices

Gas prices hit a new high for the year last week and the national average price for a gallon on Wednesday was around $2.68. That is 22.3 cents more expensive than last month, according to auto club AAA, Wright Express and Oil Price Information Service.

Oil Prices Rise 4% On Gasoline

Posted on 30. Sep, 2009 by Founder in Blog

Oil prices rose Wednesday after the government reported a surprising decrease in gasoline stockpiles, implying improvements in demand. Crude for November delivery rose $2.90, or 4.4%, to $69.61 a barrel. OIH is an Oil ETF that shows how swiftly Oil rebounded today off it’s support level in black.

OIH

The decline in gasoline demand in last week’s report significantly rebounded this week with a draw in gasoline inventories. Prices were also boosted by growing tensions related to Iran, the second largest producer in OPEC, ahead of Thursday’s meeting between the Islamic republic and the United States, Britain, France, Russian, China and Germany.

Though unemployment data expected later this week usually would have a “great deal of influence” on oil prices. The Energy Information Administration reported an increase in crude stocks of 2.8 million barrels in the week ended Sept. 25. Analysts were expecting a rise of 2.1 million barrels, according to a consensus estimate collected by energy information.

Gasoline stockpiles fell by 1.6 million barrels, according to the EIA report, surprising analysts who had forecasted an increase of 1.2 million barrels. The government report also showed that distillates, used to make heating oil and diesel, rose by a modest 300,000 barrels, under analysts’ expectations of a 900,000-barrel increase.

Gasoline prices. The national average price for a gallon of regular unleaded gas decreased to $2.479 Wednesday, down 0.8 cent from the previous day’s $2.487, according to motorist group AAA. It was the ninth consecutive day the price of gas has declined.