Investors & Friends:
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Blackstone Group LP (NYSE: BX) - Our Jan '12 calls reached 80+% of their maximum value, so we closed them out.
The date we opened the trade was 11/17/10.
Option Strategies - Naked Puts
2) Intel Corp (Nasdaq: INTC) - We sold July $15.00 puts.
3) DuPont (NYSE: DD) - We sold April $23.00 puts.
4) Comcast Corp (Nasdaq: CMCSA) - We sold July $13.00 puts.
Option Strategies - Collars
5) Bank of America Corp (NYSE: BAC) - We bought Bank of America shares and collared them with Jan '14 $12 calls (sold) and Jan '14 $10 puts (bought).
The reward-to-risk ratio of the investment is 7.7:1, among the highest we could find for BAC. The analysis is as follows.
Bought shares @ -$5.20
Bought $10 puts @ -$5.55
Sold $12 calls @ +$0.52
Total debit @ -$10.23
Maximum reward = $12 - $10.23 = $1.77
Maximum loss (risk) = $10 -$10.23 = -$0.23
Reward/risk = $1.77 / $0.23 = 7.7
Click here for the Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending November 25, 2011.
Click here for upcoming IPOs.
Lead Fund Manager
Investrio
Etcetera
1) Bill Gross, co-chief investment officer at Pacific Investment Management Co., and Laurence Fink, chief executive officer of BlackRock Inc., discuss the European sovereign-debt crisis, the U.S. economy and investment strategy.
2) Bill Gross and Larry Fink run very different operations, but they share California roots and other similarities.
Here's a summary of our investment actions from the past week.
Option Strategies - Covered Calls
1) Blackstone Group LP (NYSE: BX) - Our Jan '12 calls reached 80+% of their maximum value, so we closed them out.
The date we opened the trade was 11/17/10.
Option Strategies - Naked Puts
2) Intel Corp (Nasdaq: INTC) - We sold July $15.00 puts.
3) DuPont (NYSE: DD) - We sold April $23.00 puts.
4) Comcast Corp (Nasdaq: CMCSA) - We sold July $13.00 puts.
Option Strategies - Collars
5) Bank of America Corp (NYSE: BAC) - We bought Bank of America shares and collared them with Jan '14 $12 calls (sold) and Jan '14 $10 puts (bought).
The reward-to-risk ratio of the investment is 7.7:1, among the highest we could find for BAC. The analysis is as follows.
Bought shares @ -$5.20
Bought $10 puts @ -$5.55
Sold $12 calls @ +$0.52
Total debit @ -$10.23
Maximum reward = $12 - $10.23 = $1.77
Maximum loss (risk) = $10 -$10.23 = -$0.23
Reward/risk = $1.77 / $0.23 = 7.7
Click here for the Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending November 25, 2011.
Click here for upcoming IPOs.
Lead Fund Manager
Investrio
Etcetera
1) Bill Gross, co-chief investment officer at Pacific Investment Management Co., and Laurence Fink, chief executive officer of BlackRock Inc., discuss the European sovereign-debt crisis, the U.S. economy and investment strategy.
2) Bill Gross and Larry Fink run very different operations, but they share California roots and other similarities.
