Saturday, June 20, 2015

Financial Planning Weekend Update - June 20, 2015

What a week - although up overall, about the best that can be said is "losses were reduced". And of course, this being expiration, all positions expired out of the money. So there's that.

In fact, after last week's belly flop, this week was actually a more or less continuous rise in the S&P from 9:30 AM Monday until 4:00 PM Thursday. There were plenty of ups and downs inter-day, but only Wednesday was actually down and that only by about 2 points. Friday gave back some of Thursday's 1% bounce and here we are. I recovered about $966 of the previous week's paper losses and now I need to start planning for Monday's options.

Because many of my positions are significantly lower than when I purchased them I'm going to be selling calls near the current price rather than stretching out in time. This may mean I'll have to buy them back in July (as I did at May expiration). I have a solid cash position so that shouldn't be any kind of problem.

After all this I'm looking at a net gain of $9,878 since inception with $13,079.30 in cash for an annualized return of about 12.8%. Pretty good considering ED has been drifting down while interest rates drift up and COP has been clobbered by sustained low oil prices. Most of all though, this exercise continues to be a great education in working this kind of D&CC portfolio. With retirement now less than a year away I'm extremely pleased I started when I did.

Anyway... I'll have the usual options post up Monday evening and I've got something more fun than finance coming for Tuesday.

As always, please feel free to comment - I know I have a few readers out there, so chime in now and then, OK?

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