June’07 income trade portfolio is closed and I am happy to announce that this is 2nd month in running for a double digit growth (My target is 5% to 7% monthly return on overall invested capital). May portfolio delivered +22% and June delivered +33.5%. OPN is my real money portfolio. I don’t believe that by just investing in 1 trade, generally an Iron Condor as shared by several newsletters, one can grow his or her portfolio for 1000s% gain compounded, maybe, but not for me as I will never invest all my money into one trade and therefore I use a potfolio approach (Portfolio allocation guidelines).
Here is an example from OPN:
For June income portfolio, I was invested in 5 underlying with 3 different strategies (Iron codor for RUT, Bullish calendar for BA, Calendars on OIH and SHLD) and 3 different sectors (OIL – OIH and MRO, Retails-SHLD, and Air Transport/Defence- BA). Once the risk/reward for SHLD was not in favor (before earnings), I closed it for 14% and moved the funds to open MRO calendars which resulted in >33% gains. So it is a mix bag of strategies and underlyings.
For July income trade portfolio, I have 4 miniportfolio opened (2 in Oil, 1 in Tech and another one is RUT index Iron Condor). Out of 4, 3 are making profit and 1 is losing. As of now, I am not worried about the losing trade as there is lot of room to make money in this trade. Overall portfolio is positive resulting in 1.27% gains. June expiration is now over so expect theta for all these 4 to accelerate. You will find updates for each underlying thread for Jun’07 and Jul’07 on the forum as well (Pls note you should be an OPN subscriber to view these exclusive boards, rest of the forum is free).
Separately I had also shared a BA double diagonal for free to OP readers. This trade is already making 8% gains.
Profitable trading, OptionPundit
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