OptionPundit

Tag: USO

  • OPNewsletter – May’09 (+9.48%), Jun’09 (Open)

    OPNewsletter closed May’09 for +9.48% x-commissions and +6.76% inclusive of commissions. As I stated earlier, after many months of waiting, we crossed our 60% portfolio investment target. It’s always an advantage if the capital was preserved. Yes we did have a few months of low returns, but that preserved capital is an out performance (vs general markets) already and now we can start using this preserved capital for further gains vs. wasting energy in recouping the losses. Just 1 single covered call (X) was more than enough to cover OPN fee  (and triggered no adjustment needs).

    Sign-up for the OPNWaitlist here.

    Maximum investment incurred was +64.4% (reached on April 23) and since then we continued to use that as basis for returns calculation even though we were generating credit since then for the next two weeks. Here is the tally-

    • IWM, USO and UPS were almost breakeven
    • USO was closed for +0.8% (after Mar @ >+22% and Apr@>+13%)
    • GDX closed for +18.38% in May
    • X closed for 23.29% gains
    • HAL was closed for +22.69%
    • AMZN was closed for +15.83% and
    • IBM was closed for +23.01%

    This doesn’t include bonus speculative trade on Visa earnings (V) that was closed for +35%, CSX , GS, GOOG and others some of which didn’t make much money or closed for breakeven. We have already opened our June’09 income portfolios and invested almost 35-38% of capital. After a few months gap, we opened a 160 points wide RUT Iron condor for $2.20 credit which is already making money in two days.

    If you would like to join OPNewsletter, pls sign-up for the waitlist here.

    Profitable Trading, OP

  • OPNewsletter (Outperformance)- May’09 +6.1%

    Option Trading is equally useful to retail traders and can generate consistent income if used properly. Hope you enjoyed the free trade alerts for some earnings play (You may sign-up for the Basic membership that is free till Dec 2009)

    A Fantastic week for OPNewsletter! We played HAL, IBM, UPS and AMZN for earnings and all these one day players nicely added value to the portfolio. We chose to close HAL and AMZN and to keep IBM and UPS for further gains. These were special circumstantial opportunities and we took full advantage without having to worry which direction stocks will move post earnings.

    After many months of waiting, we crossed our 60% portfolio investment guideline. Maximum investment incurred was +64.4% and we shall continue to use that as basis for returns calculation even though we are now in credit generation phase. We have 42.5% in cash (assuming 10 k portfolio). The capital preservation strategy worked nicely. We moved out of markets in early when OPN subscribers were clearly warned of the upcoming market meltdown when I shared the need to stay away should Dow slips below 10,697. That was on Sept 15th, well in advance before the real disaster struck. As I always say, if you know how to preserve trading capital, you can always make it back to market. At OPNewsletter, Capital preservation is always a higher priority than missing a potential investment opportunity.

    Net, overall OPNewsletter is up +8.62% (x- brokerage commissions) and +6.13% (including commissions). We are nicely positioned to reap further gains and we still have 3 weeks to go for May expiration. I don’t have to worry so much about the market fall as that will further benefit our portfolios.

    • USO is down -1.34%
    • UPS is up +3.67%
    • IWM is up +6.08%
    • GDX is up +8.46%
    • X is up +13.01%
    • IBM is up +19.88%
    • HAL was closed for +22.69% and
    • AMZN was closed for +15.83%

    (If you would like to join for “No Profit, No Fee” OPNewsletter, pls click here to sign-up for the waitlist)

    We have reached our investment capital deployment goal for the month and I am not planning to add any more investment capital unless there are opportunity that I don’t want to miss at all. I am not expecting any major adjustments except in IWM if markets make strong move up. The probability favors downside.

    Looking forward to 16th positive month for OPNewsletter.

    Profitable Trading, OP

  • OPN Apr’09 +12.5%, 15th Positive Month (Out of last 16)

    Get ready for an action filled week that has lot of economic data flowing in, traders returning from holidays and banks announcing earnings. Of course, Banks have to have positive impact due to “relaxation” in Mark-to-market accounting rules. This week is also flooded with other earnings and option expiration schedule, an excellent environment for exceptional opportunities.

    April was another winning month for OPNewsletter. 15th out of last 16 months. In spite of the whipsaws we observed, this month didn’t require much adjustment, almost sitting idle generating cash for OPN trades. OPN has successfully rolled over the portfolios for May holdings (If you would like to sign-up for OPNewsletter, pls click here).

    OPN closed +12.54% x-commissions +9.10% including commissions. We used up almost 38% of our capital. That’s a pretty good returns considering that we could sleep well without worrying about adjustments. If not the last few days volatility of X, the results would have been far better, but that also didn’t result into any significant adjustments and we closed +11.78% based on the way OPN calculates for intra month and >+6% even assuming the max capital.

    IWM and USO portfolio closed for +13.97% and +14.55% based on OPN way of calculation. Essentially the returns are much higher when compared with less capital involved (OPN uses the maximum capital invested at any point as the base for the whole month vs only for the duration it was used). For more information on OPNewseltter, pls click here. This was the 2nd running month of profits for USO. Last month we closed USO portfolio for +22.8%.

    The above result doesn’t include results from speculative trades i.e. SKF +100%, AAPL +100%, NKE and FDX Put and so on. Some of these free trades and also the SKF smiling, BAC Trade, and AA Earning play were shared for free with the registered members. You may want to sign-up for the Basic Membership (Free until Dec 2009) that I use to share free trade alerts for registered members.

    Net, a great month and looking forward another one. We have already started May income portfolios and are positioned to take advantage of market moves. If you would like sign-up for OPNewsletter, pls click her e for OPN Waitlist.

    Profitable Trading, OP

  • OPNewsletter (Apr’09) +7.6%, 15th Positive Month Out of 16

    A terrific week and 3 cheers to the Bulls for sustaining the momentum. Finally, my witty Oct’08 remark on “Mark to Market” relaxation a.k.a “do-what-you-want” came true; G-20 supported by $1trillions and a market that went down nearly-2% and then back up +6.5% to close overall +5.75% (Dow). Ups-n-down, and then up up and up. There is no doubt markets are overly stretched but continuous strength in the face of overbought indicators is a sign of strong momentum. Markets continues to discount all the bad news and turns bullish mad on almost at every ray of hope; I hope that light at the end of tunnel is not another locomotive.

    For OPN portfolios, so far, are doing fine this month as well. We increased our investments by almost 3.65% last week and in spite of this increase, we are up overall +7.6% x-commissions and +5.3% including commissions for April portoflios.

    • IWM Portfolio is up +7.46%;
    • X portfolio is up +17.2%,
    • USO portfolio is up +6.88%;

    So far we have deployed 37.8% of assumed 10K capital.

    This is the 15th month of positive gains for OPNewsletter (out of last 16) since I reopened it in Jan 2008 and this period includes one of the worst bear markets, at least of my life time. The success spells for the consistency and for the promise from OP “Powerful option trading strategies for Consistent Income“, month after month. And hence earning the buck for the work i.e. “No Profit, No Fee“.

    I shall start looking for May’09 portfolios soon. If you would like to sign-up for the OPNewsletter, pls click here.

    I hope you read a big picture post. There have been multiple +20% type rallies and even this time around as well. But this time it is different, it is on sustained buying power as well as sustain drop in selling pressure. But hey markets can do anything, anytime, so just be cautious and if you do plan to go long, you may wanna go in increments.

    If you would like to trade alongside OPNewsletter, pls click here

    Have fun, Profitable Trading, OP