As of today, May 4 2006, I have $39k cash sitting in my brokerage account. As of January 4, 2006, my portfolio had $36k cash. From January thru May, my portfolio returned 3k or 8% -Not a bad return since I’m now only 12% from my goal for the year. How did I achieve that growth? Below is a quick summary.
| DATE | DESCRIPTION | QUANTITY | PRICE | AMOUNT |
|---|---|---|---|---|
| 1/12/2006 | Bought 600 XLE @ 54.68 | 600 | $54.68 | $(32,818.99) |
| 1/12/2006 | Sold 6 XBTAC @ 0.70 | 6 | $0.70 | $404.49 |
| 1/23/2006 | Sold 600 XLE @ 55.00 | 600 | $55.00 | $32,968.99 |
| 1/23/2006 | REMOVAL OF OPTION DUE TO ASSIGNMENT (XBTAC) | 6 | $ – | |
| 1/25/2006 | Bought 600 XLE @ 56.94 | 600 | $56.94 | $(34,174.99) |
| 1/30/2006 | Sold 6 XBTBF @ 1.50 | 6 | $1.50 | $884.48 |
| 2/7/2006 | Bought 6 XBTBF @ 0.15 | 6 | $0.15 | $(105.49) |
| 4/11/2006 | Sold 600 XLE @ 56.66 | 600 | $56.66 | $33,983.96 |
| 4/13/2006 | Bought 600 SNDK @ 61.91 | 600 | $61.91 | $(37,156.99) |
| 4/13/2006 | Sold 6 SWFDZ @ 2.60 | 6 | $2.60 | $1,544.46 |
| 4/24/2006 | REMOVAL OF OPTION DUE TO EXPIRATION (SWFDZ) | 6 | $- | |
| 4/26/2006 | Sold 600 SNDK @ 61.9093 | 600 | $61.91 | $37,134.44 |
| 4/28/2006 | ORDINARY DIVIDEND (XLE) | $96.86 | ||
| 5/11/2006 | Bought 1900 EXPE @ 19.75 | 1900 | $19.75 | $(37,525.00) |
| 5/11/2006 | Sold 19 UEDED @ 0.95 | 19 | $0.95 | $1,780.70 |
| 5/22/2006 | REMOVAL OF OPTION DUE TO EXPIRATION (UEDED) | 19 | $- | – |
| 10/5/2006 | Bought 100 GDX @ 34.25 | 100 | $34.25 | ($3434.75) |
| 10/5/2006 | Sold 1 GDXKI @ 1.50 | 1 | $1.50 | $139.25 |
As you can see, my current MMO (money making opportunity) strategy is the use of covered calls (Buy-Write/Overwrite) to generate returns for my portfolio. The positive cash flow is highlighted in green. The reason for using this strategy is because of my overall negative outlook on the US Stock Market. As I update this page on 8/11/2006, Oil is trading at $76/barrel, Gold is at $620, and the next Federal Reserve meetings in Sept. 06 will likely result in another rate hike up to 5.5% or more. These events are all negative for the stock market and it has oscilated up and down the past few months. I will continue to employ the covered call strategy utilizing ETFs until a major shift in the Dow, Oil, Gold, or interest rates takes place.
As of late 2006, transactions are now posted on http://www.etfcoveredcalls.com
Happy Hunting,
Rich Slick