Investors & Friends:
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) General Electric Company (NYSE: GE) - Our Jan '13 calls reached 80+% of their maximum value, so we closed them out. The date we opened the trade was 3/16/11.
Option Strategies - Naked Puts
2) Blackstone Group LP (NYSE: BX) - We sold Jan '13 $5.00 puts. We currently hold BX long. If the puts are ultimately assigned, it will double our BX position.
Lead Fund Manager
Investrio
Ted, Checked out your blog per your invitation on Norman Hallett's trading journal blog. It looks interesting and professional and the commentary you provide certainly suggests that you know what you're doing. BUT,I must wonder (as a relative novice), why are your trades almost exclusively deep ITM naked LEAPS puts (or am I misreading?)? I can understand wanting to buy good companies on the cheap, and keeping the put premium if the stock doesn't drop to your strike, but that would usually be for front or second month options. You can't get assigned for a year and a half, and you can't be taking in that much premium given how far OTM you generally place the trades. Further, wouldn't you need a tremendous amount of capital withheld/frozen by your broker until Jan '13 for all these trades? I just am not following this. Granted, from your commentary you seem to know a lot more than I do. What am I missing? Maybe I can learn a new strategy? Response, if you have the time and inclination, to gkargman@gmail.com. Many thanks, and best of luck in your trading. - Jerry
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