Tuesday, July 10th, 2012 at 6:39 pm
I am happy to announce to my readers, that my personal stock portfolio is currently over 10% return for the year. In fact it is up 11.8% as of July 10th close. Additionally, there is still 174 days left in this year. How have I been so successful?
- I straddled Best Buy (Symbol: BBY), sold on a bounce and then sold again on a free-fall.
- I was long on Sprint (Symbol: S) for a return of about 12% on my total portfolio.
- I shorted Monster (Symbol: MNST) for a very quick 11% gain, or about 1.5% return on total portfolio
- And a bunch of various smaller trades, including GE, MET, DOW, AAPL.
- I sold out of Amazon at a bad time to take a massive loss
- I bought into Netflix (Symbol: NFLX), thinking that it was ready to regain $100+ a share.
- I bought HP (Symbol: HPQ), and it was a dud.
- My conservative cover call positions, really didn’t pan out to be too successful. Most were gains, but fraction of percentage gains.
Why such a long delay on an update? Because I changed brokers. Because I deal with such small amounts of money, I decided to go to OptionsHouse from Etrade. They had a promotion that they would transfer it over without cost and I decided to jump. Do I like OptionHouse More? Yes and No. The fees are substantially cheaper, but the interface isn’t as good as some of the Etrade products. However, the fees are so much cheaper, that I will continue to stay with OptionHouse. Five bucks for a option trade of 5 contracts or less, hard to beat.
There was a little but of a hick-up though, one of my cost basis did not transfer over properly and they solved one problem, but made another. They added the cost basis (that I had to give them via email), but it immediately showed up as a gain.
Regardless, be prepared to have more stock portfolio updates and recommendations. At this current rate I could even hit a crazy 20% by the end of the year (or lose the 11% I have gained thus far).
Saturday, March 10th, 2012 at 2:18 pm
I thought it was time to give an update on my personal brokerage account. I recently wrote about my stock pick of Metlife in my new “Stocks for the long run” series, but I thought it would be a good idea to give a comprehensive update. The biggest update has to be the fact that I put a considerable amount of money into my brokerage account. I put my tax return along with all of the spare money in for investing.
My goal is still to hit 10% or greater return for the year, and I think this still is very possible despite taking a giant hit previously on both Netflixs and Amazon. My account is up 2.66% as of today. I also have $429 worth of negative equity because of the options I wrote, and when these “out of the money” options expire that will add a 3.71% to my account. Additionally I will receive dividends from Dow Chemical (2.94% Yield), Hewlett Package Co. (1.99%), and Metlife (1.93%). These three stocks represent 83.7% of my portfolio.
My current holdings:
As you can see, I have Dow Chemical and Metlife, both of which have cover calls written on them. I bought HPQ (Hewlett Package Co.) and had intentions of writing a cover call on it, but I decided to sit on it long for a bit. which was a big mistake. HPQ has single handedly drained all of my gain made from my other successful stocks picks in recent times. I have contemplated selling out of HPQ, but I stand by it strictly on fundamentals. I have considered writing an option on it today to offer some downward protection, but I feel if I am not long in the stock at $24.18, then I should just sell the stock altogether. I am long on HPQ unless something else changes.
My Sprint option, which I have previously wrote about is up 26.42%. I remain long on Sprint. I have considered selling out and waiting for an adjustment, but I stand by my initial decision on this stock to be long. I also previously talked about straddling this Sprint Nextel Corporation and I think now is the time I would do so if I was considering taking a hedge position.
Overall I am very happy with my current brokerage account portfolio except for HPQ. I finally feel that my account is large enough to be relevant ($11,535). I also feel that things have finally settled down and I have found my trading strategy. I look forward to hitting double digit returns for 2012.