$10,000 Income Portfolio

[GOB]

August 2012 Monthly Update

What a month! Some good trades, a stupid margin call, and crazy AAPL movement with all-time highs reached and fairly sharp retracement following.

August 2012 Starting Balance: $20,889.68
August 2012 Ending Balance: $23,446.72
August 2012 ROI: 12.2%
Total ROI to date: 14.4%
Annual projected ROI: 86.4%

Needless to say, I'm pleased with the results so far. I'm not expecting to continue at this torrid pace but we'll see what happens.

I have deposited additional funds that recently arrived in the account because of the updated margin situation, so my starting balance going into September will be $35,966.63 (with a total deposit of $33,000).

[Dmoney]

Fantastic monthly ROI... Keep those numbers running and you'll be a billionaire shortly .

Do you plan on sticking with just Apple, or broadening the portfolio out? I know this is just one component of a broader portfolio, and AAPL is an ideal stock to run this strategy on.

[GOB]

It's not restricted to AAPL but at this point I don't have the time to focus on anything else in addition. Also, there is the issue of margin - if I get assigned I will not have much room for other positions. As my account increases I definitely plan to get into other stocks as well.

Right now though, I'll largely carry on doing what I'm doing. Can't argue with the results, so why mess with a good thing?

[Dmoney]

That's what I figured. I suppose with the short-term trading it stays exciting enough with just one stock.
Trading a few months out each time leaves me pretty bored even with a handful.

[Dopplegangerr]

Wow fantastic job GOB. I look forward to reading this post every day. Keep up the good work

[GOB]

Well, it's official. Apple is holding an event on September 12 and it looks like they'll announce the iPhone 5. I thought they would call it "the new iPhone" just like te iPad but at the end of the day it's just a name.

My $670 Sep 7 put sell is up around $500 right now. I'll hang on for now and probably make a decision on flipping it a little later on in the week. I don't want to play things too aggressively right now since we're close to all-time highs and also because AAPL tends to sell off after iPhone announcements. The announcement never lives up to the crazy hype, but once the sales numbers come in the stock goes on a tear.

[GOB]

Two days to expiry and AAPL is hovering right around my strike price. This is the perfect situation for my strategy - outstanding gains while the stock remains flat or rangebound. My short $670 put is up $659 right now. Tomorrow morning the Sep 14 weeklies will be released. Depending where we open I may book this profit and roll forward another week. If we open lower I'll likely hang on - don't mind getting assigned at $670 for iPhone announcement week.

[Lephturn]

I am still wondering if they are going to pull a surprise at some point with the TV.

Nice gain this week. I'll take a look tomorrow at the weeklies for something to sell. I need to look at the HV and IV - if we ramp into this event on the IV I may have missed my chance. Maybe a reverse iron condor if it hasn't moved up much yet and liquidate just before the announcement.

[humble_pie]

My short $670 put is up $659 right now.

i'm lost in the deep dark woods. If the put is up 659 it would cost plenty $$ to buy it back, no ?

[GOB]

Sorry, perhaps my wording was confusing. I mean the profit on my sold put is currently $650 - sold for $10.85 and currently at $4.34.