Investors & Friends:
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Clean Energy Fuels Corp (Nasdaq: CLNE) - We sold Mar $12.50 calls for $1.80.
Option Strategies - Naked Puts
2) Citigroup Inc (NYSE: C) - We closed our Sep puts. Our position gained 465%.
Return calculation = (($1.13 premium from selling puts - $0.20 cost of closing position) / $0.20 cost of closing position) x 100%
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 8-28 is attached. We enhanced the report by adding two new pages: Executive Summary page and Crash Confidence Index page. We also added to the list of Internet resources and recommended books to read.
Lead Fund Manager
Investrio
Etcetera
For the past few days, Citigroup (which taxpayers now own a third of), mortgage giants Fannie Mae and Freddie Mac (which were placed under government conservatorship last September) and Bank of America (which has needed $45 billion in bailout funds) have been far and away the most actively traded stocks on the New York Stock Exchange...
Earlier this year, a Warren Buffett-backed electric car made its Detroit debut... here's a blog I stumbled across on the BYD Electric Car Company...
Is this HAL in the making?
Which stock should I buy?
I generally frown on investing in mutual funds, but here's two funds outperforming their peers, worth a look...
Here's a CNBC video interview with one of the four co-portfolio managers...
Bankrupt Linens 'n Things resurrected in Web-only form...
Sunday, August 30, 2009
Sunday, August 23, 2009
Investors & Friends:
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Our shares of Ricks Cabaret International (Nasdaq: RICK) were called away on 8/21. Our position gained 47.9%.
Return calculation = (($7.50 strike - $5.07 cost) / $5.07 cost) x 100%
2) Our shares of Gold Fields Ltd (NYSE: GFI) were called away on 8/21. Our position gained 11.7%.
Return calculation = (($11.00 strike - $9.85 cost) / $9.85 cost) x 100%
3) United States Natural Gas Fund (NYSE: UNG) - We closed our Sep calls and sold a new round of Jan calls for $2.00.
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 8-21 is attached.
Lead Fund Manager
Investrio
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Our shares of Ricks Cabaret International (Nasdaq: RICK) were called away on 8/21. Our position gained 47.9%.
Return calculation = (($7.50 strike - $5.07 cost) / $5.07 cost) x 100%
2) Our shares of Gold Fields Ltd (NYSE: GFI) were called away on 8/21. Our position gained 11.7%.
Return calculation = (($11.00 strike - $9.85 cost) / $9.85 cost) x 100%
3) United States Natural Gas Fund (NYSE: UNG) - We closed our Sep calls and sold a new round of Jan calls for $2.00.
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 8-21 is attached.
Lead Fund Manager
Investrio
Sunday, August 9, 2009
Investors & Friends:
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Our shares of Allied Irish Banks (NYSE: AIB) were called away on 8/6. Although we hate to say goodbye, our position gained 160.4%.
Return calculation = (($2.50 strike - ($1.86 cost - $0.90 premium )) / ($1.86 cost - $0.90 premium)) x 100%
2) We bought the United States Natural Gas Fund (NYSE: UNG) on 8/6 @ $13.37 and sold September $15.00 calls for $0.60.
3) Blackstone Group (NYSE: BX) - We sold December $20.00 calls on 8/5 for $0.60.
Option Strategies - Naked Puts
4) Citigroup Inc (NYSE: C) - We sold September $5.00 puts on 8/7 for $1.13.
Option Strategies - Put Insurance
5) Clean Energy Fuels Corp (Nasdaq: CLNE) - Taking advantage of low volatility and cheap options, we bought August $7.50 puts for 5 cents.
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 8-7 is attached.
Etcetera
Did you know you can invest in Elvis, Muhammed Ali, and American Idol via one company?
CRX Inc.'s (Nasdaq: CKXE) assets include: the rights to the name, image and likeness of Elvis Presley and the operations of Graceland; the rights to the name, image and likeness of Muhammad Ali; and the rights to the IDOLS television brand, including the American Idol series in the United States and local adaptations of the IDOLS television show format which air in over 100 countries worldwide.
Lead Fund Manager
Investrio
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Our shares of Allied Irish Banks (NYSE: AIB) were called away on 8/6. Although we hate to say goodbye, our position gained 160.4%.
Return calculation = (($2.50 strike - ($1.86 cost - $0.90 premium )) / ($1.86 cost - $0.90 premium)) x 100%
2) We bought the United States Natural Gas Fund (NYSE: UNG) on 8/6 @ $13.37 and sold September $15.00 calls for $0.60.
3) Blackstone Group (NYSE: BX) - We sold December $20.00 calls on 8/5 for $0.60.
Option Strategies - Naked Puts
4) Citigroup Inc (NYSE: C) - We sold September $5.00 puts on 8/7 for $1.13.
Option Strategies - Put Insurance
5) Clean Energy Fuels Corp (Nasdaq: CLNE) - Taking advantage of low volatility and cheap options, we bought August $7.50 puts for 5 cents.
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 8-7 is attached.
Etcetera
Did you know you can invest in Elvis, Muhammed Ali, and American Idol via one company?
CRX Inc.'s (Nasdaq: CKXE) assets include: the rights to the name, image and likeness of Elvis Presley and the operations of Graceland; the rights to the name, image and likeness of Muhammad Ali; and the rights to the IDOLS television brand, including the American Idol series in the United States and local adaptations of the IDOLS television show format which air in over 100 countries worldwide.
Lead Fund Manager
Investrio
Sunday, August 2, 2009
Investors & Friends:
Here's a summary of our investment actions from the past week.
Long Stocks
1) We sold Medco Health Solutions Inc (NYSE: MHS) on 7/29 @ $53.28 for a 13.1% gain, after it reported nice earnings this week.
Option Strategies - Covered Calls
2) American Axle & Manufacturing Hldngs Inc (NYSE: AXL) - We sold a new round of Oct calls for $0.75.
Option Strategies - Put Insurance
3) Taking advantage of low volatility and cheap options, we bought Aug puts for 5 cents for American Oriental Bioengineering Inc (NYSE: AOB).
Options are currently quite cheap because option investors are not forecasting volatility. Cheap options are generally a good thing for option buyers and a bad thing for option sellers. When dealing with cheap options, consider purchasing insurance to protect existing positions or buying some unlimited profit potential. Some investors do not like to hedge with long options because of time decay. This is understandable. The cost of time decay would be reduced if implied volatility climbs higher. A cheap time to hedge/juice a portfolio with options is when the Volatility Index (VIX) is low. It’s like buying health insurance before major health problems arise.
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 7-31 is attached.
Etcetera
For past averages to be meaningful, the data being averaged have to be drawn from the same population. If this is not the case - if the data come from populations that are different - the data are said to be nonstationary. When data are nonstationary, projecting past averages typically produces nonsensical results. - Bradford Cornell, The Equity Risk Premium
Lead Fund Manager
Investrio
Here's a summary of our investment actions from the past week.
Long Stocks
1) We sold Medco Health Solutions Inc (NYSE: MHS) on 7/29 @ $53.28 for a 13.1% gain, after it reported nice earnings this week.
Option Strategies - Covered Calls
2) American Axle & Manufacturing Hldngs Inc (NYSE: AXL) - We sold a new round of Oct calls for $0.75.
Option Strategies - Put Insurance
3) Taking advantage of low volatility and cheap options, we bought Aug puts for 5 cents for American Oriental Bioengineering Inc (NYSE: AOB).
Options are currently quite cheap because option investors are not forecasting volatility. Cheap options are generally a good thing for option buyers and a bad thing for option sellers. When dealing with cheap options, consider purchasing insurance to protect existing positions or buying some unlimited profit potential. Some investors do not like to hedge with long options because of time decay. This is understandable. The cost of time decay would be reduced if implied volatility climbs higher. A cheap time to hedge/juice a portfolio with options is when the Volatility Index (VIX) is low. It’s like buying health insurance before major health problems arise.
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 7-31 is attached.
Etcetera
For past averages to be meaningful, the data being averaged have to be drawn from the same population. If this is not the case - if the data come from populations that are different - the data are said to be nonstationary. When data are nonstationary, projecting past averages typically produces nonsensical results. - Bradford Cornell, The Equity Risk Premium
Lead Fund Manager
Investrio
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