July Portfolio Income – Amazing 5.92%
Posted on 19. Jul, 2010 by Founder in Blog
During our July trading, we did not close out ANY trades at a lose once again.
Compared to the June portfolio, we had a total return that was MUCH higher comparatively at 5.92% vs. 1.96%. We are extremely happy that we had one of our best months following the flash crash and correction. The VIX spike back in May when we started building this portfolio was an amazing opportunity that we capitalized on.
For more commentary on our amazing month and HOW we pulled it off with the huge correction please watch the video below:
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:
QQQQ 30 PUT – $18/$308 = 5.83% Return
DIA 80 PUT – $35/$803 = 4.36% Return
SPY 75 PUT- $55/$772 = 7.12% Return
IWM 45 PUT – $30/$450 = 6.67% Return
With regard to TOTAL INCOME and RETURN, the July portfolio produced $138 of total income after investing just $2,333 in margin. This is nearly double what we made last month with far less margin requirements. That means we saw a total portfolio return of 5.92% 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 4 contracts for the month. Those members with a higher capital base should be entering multiple contract positions each week.
If you want honest and straight-forward trading then please keep us in mind. Hey, you might even want to join in on all the fun by signing up for a Membership Right Now!
June Portfolio – A Conservative 1.96%
Posted on 20. Jun, 2010 by Founder in Blog
In the investing world, slow and steady wins the race every time.
During our June trading, we did not close out ANY trades at a lose once again. That’s hard to say for some other sites out there, especially after the recent correction that almost certainly messed with portfolios.
Compared to the May portfolio, we had a total return that was slightly lower comparatively at 1.96% vs. 2.73%. We are a little disappointed that we missed our monthly goal of 2-3% per month. However, we feel that in building the portfolio for June, we had a lot of reasons to stay far from the market and ultra-conservative.
Believe me when I say that next month’s profit will be incredible given the VIX spike we had a couple weeks ago!
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:
SPY 130 CALL – $18/$909 = 1.98% Return
DIA 118 CALL – $18/$1,417 = 1.27% Return
IWM 60 PUT - $20/$630 = 3.17% Return
QQQQ 40 PUT – $10/$400 = 2.50% Return
With regard to TOTAL INCOME and RETURN, the June portfolio produced $66 of total income after investing just $3,356 in margin. That means we saw a total portfolio return of 1.96% 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 4 contracts for the month. Those members with a higher capital base should be entering multiple contract positions each week.
If you want honest and straight-forward trading then please keep us in mind. Hey, you might even want to join in on all the fun by signing up for a Membership Right Now!
December Portfolio Return – 5.19%!
Posted on 19. Dec, 2009 by Founder in Blog
The December portfolio return Extremely Profitable and marks the 11th consecutive month without ANY losing trades! Again that’s 11 months without any losing trades people! If you want to start seeing these returns in your own account, you only have UNTIL JANUARY 1st to SIGN UP FOR OUR FREE 30 DAY TRIAL. After that it’s gone FOREVER – WE PROMISE YOU THAT!
Watch this video to recap the December Income Portfolio:
Compared to the November portfolio, we had a return that was much higher comparatively from 4.38% 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 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:
QQQQ 30 PUT – $8/$192 = 4.16% Return
IWM 69 CALL – $20/$369 = 5.42% Return
SPY 85 PUT - $27/$499 = 5.41% Return
QQQQ 47 CALL – $22/$425 = 5.17% 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 December portfolio produced $77 of total income after investing just $1,485 in margin. That means we saw a total portfolio return of 5.19% 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 4 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 50% per year***
Currently we have a fully invested 2010 January income portfolio and are in the middle of building the 2010 February 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.
New Trading Alert is AVAILABLE NOW for our Members! If you would like to start seeing these same return in your portfolio, SIGN UP FOR A FREE 30 DAY TRAIL here. Remember that this will end January 1st!
Enjoy your profits!
Intra-Day Reversal Trading Ideas
Posted on 18. Nov, 2009 by Founder in Blog
Yesterday, the market surged but watch for an intra-day reversal to come soon. In addition the open interest for in the money index Calls is much greater than the open interest for in the money index Puts – as we showed in a post a couple days ago now. This means that traders could trickthe market by legging out of hedged positions on an intra-day basis.
As you can see in yesterdays SPY chart, each rally has ended with an intra-day reversal off of the new high. A day or two later, the market has a steep decline and that starts the slide. So for now we are staying slightly bullish and watching for that intra-day reversal.
Why Isn’t Everyone Using This Strategy?
Posted on 15. Jul, 2009 by Founder in Blog
Actually there are thousands of people using this strategy right now. They are called market makers and hedge fund managers. For example, Warren Buffet uses these exact same strategies in his company. So does Pete Najarian, a panelist on the CNBC show Fast Money along with hundreds of others that trade options for a living. They and thousands of other traders and investors are using options each day to grow and protect their portfolios.
W. Buffett Uses Our Strategy
Posted on 01. Jun, 2009 by Founder in Blog
It’s absolutely true and we are going to prove it to you here. Warren Buffett is a U.S. investor, businessman, and philanthropist. He is far and away one of the most successful investors in history, the largest shareholder and C.E.O. of Berkshire Hathaway, and is currently ranked by Forbes as the richest person in the world. There is no doubt that the “Oracle of Omaha” is one of the most recognizable and trusted names in the investment world.
But, it may come as a surprise to most of you that Warren Buffett uses the exact same strategy that we use here at the Option Writer. In fact, his company Berkshire Hathaway has disclosed publicly every single quarter that they write index options for income. Here’s what they say:
“Berkshire has written equity index put option contracts on four major equity indexes including three indexes outside of the United States.”
Don’t you think that if the richest man in the world is writing options, you should be doing the exact same thing? We do. That’s why we choose to this option strategy over any other.
To prove that Warren Buffett and Berkshire Hathaway use the same option strategy, we have provided direction links to the quarterly and annual reports on the Berkshire website below:
1st Quarter 2009 Report – Page 10, Paragraph 1
2008 Annual Report – Page 45, Paragraph 2
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