Can you guess what changes I've made this month? Don't worry, I won't make you do that. I'll spell them out.
First, my entire TDW position got called away when it went through the strike price. I bought them all back in a wash sale (albeit at a slightly higher price then the called-away price). That's the risk I take with writing covered calls on a stock I'll hold forever. I renewed my short-term covered calls on TDW and even sold some cash-covered puts under the position. TDW is one stock I'm counting on to deliver long-term returns during Peak Oil.
My covered calls and short puts with GDX and FXI all expired, so of course I renewed them all. Gold and China are my way of hedging the eventual collapse of the U.S. dollar and so far they're doing fine.
I sold more cash-covered puts under EFA. The P/E of 12 still looks good to me. I'll go long when Mr. Market decides to capitulate on the rest of the world outside the U.S.
My long puts on LMT and IYR will expire next month. I set them to hedge against the re-bubble in housing and the mega-bubble in the defense/aerospace sector. Neither of those bubbles has popped yet. If they expire worthless I'll net them as tax losses.
My option sales gave me some cash. I don't like sitting on cash, so I put some of it to work in a CD and a few T-Bills. Yeah, that extra buck fifty in yield will put me right up there on the Forbes 400 some day.
Finally, I've made no moves on KEX, FLIR, SCHW, or other stocks I've been watching since mid-2009. They're great companies but they're just not on sale yet. I'll wait.
First, my entire TDW position got called away when it went through the strike price. I bought them all back in a wash sale (albeit at a slightly higher price then the called-away price). That's the risk I take with writing covered calls on a stock I'll hold forever. I renewed my short-term covered calls on TDW and even sold some cash-covered puts under the position. TDW is one stock I'm counting on to deliver long-term returns during Peak Oil.
My covered calls and short puts with GDX and FXI all expired, so of course I renewed them all. Gold and China are my way of hedging the eventual collapse of the U.S. dollar and so far they're doing fine.
I sold more cash-covered puts under EFA. The P/E of 12 still looks good to me. I'll go long when Mr. Market decides to capitulate on the rest of the world outside the U.S.
My long puts on LMT and IYR will expire next month. I set them to hedge against the re-bubble in housing and the mega-bubble in the defense/aerospace sector. Neither of those bubbles has popped yet. If they expire worthless I'll net them as tax losses.
My option sales gave me some cash. I don't like sitting on cash, so I put some of it to work in a CD and a few T-Bills. Yeah, that extra buck fifty in yield will put me right up there on the Forbes 400 some day.
Finally, I've made no moves on KEX, FLIR, SCHW, or other stocks I've been watching since mid-2009. They're great companies but they're just not on sale yet. I'll wait.
