Market Overview

Income Portfolio – Still Selling in May and Going Away


Last month, we decided we were going to sell in May and go away

We had turned bearish on the market, perhaps a little early and, since our Income Portfolio was running 100% ahead of schedule and more like 250% counting the unrealized gains from our buy/writes as the market zoomed higher on us, we decided it would be good to go back to cash – especially as it would be fun to build a brand new Income Portfolio for 2012 that our newer Members will be able to benefit from following as well as it is, by far, our most popular virtual portfolio.

We're not cashing it all out as some positions still need to run their courses, but we won't be upset to be cashed out on some so we covered conservatively in anticipation of the pullback that just began last week.  I'm going to comment on every position with red highlights for action items, we'll start with our closed positions:

10 GE Jan $17.50 puts sold for $2.10, closed at now $1.30 – up $800

20 RIMM 2014 $22 puts at net $3.52, closed at $10.10 – down $13,160

3,000 NLY .55 dividend paid on 3/28 – up $1,650

10 TITN March $22.50 puts sold for $4.50, expired worthless – up $4,500






  • 20 HCBK July $9 puts sold for $1.45 (-$2,900), now $2.10 – down $1,300
  • 20 HCBK July $7 calls sold for .30 ($600), still .30 – even 
  • 1,000 HCBK at net $6.83, now $6.79 – .08 dividend expected 5/8 ($80)
  • 15 GE April $19 puts sold for .55 (-$825), now .25 – up $450
  • 15 GE April $19 puts sold for .45 (-$675), now .35 – up $150
    • We were just playing for the cash so we're done with these on expiration day.  We'll stop the puts at .45 and leave the calls if stopped out.
  • 15 HPQ Jan $30 puts sold for net of $2.23 (-$3,345), now $7.08 – down $7,275
  • 10 HPQ Apr $24 calls sold for

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