Investors & Friends:
Here's a summary of our investment actions from the past week.
Option Strategies - Naked Puts
1) Holly Corp (NYSE: HOC) - We sold June $17.50 puts for $0.60 premium. This is our second time selling puts on HOC. Our first ones expired last week.
Breakeven price = $17.50 - $0.60 = $16.90
Max Possible Return (Type A) = 7.2% (function of strike price)
Max Possible Return (Type B) = 54.7% (function of buying power)
The Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending 12-25 is attached.
We at Investrio wish all of you a peaceful holiday season. May the season give you and yours all you deserve. Have a happy holiday.
Lead Fund Manager
Investrio
Etcetera
We recently rolled out the Investrio Putpicker. It's an optimization tool we developed, that we use to:
-Assess all the available options quickly for a particular stock,
-Ensure the premium exceeds our target,
-Ensure the downside protection from the current stock price to the option strike price exceeds our target,
-Measure how much downside risk exists from the option strike price to the stock's multi-year low,
-Ensure the return exceeds our target, and
-Compare the impact of short-term vs. long-term capital gains tax rates on our return.
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