The returns for this month (and when I post for 2011) are based on the initial valuation of the account: approximately $51K plus. To keep an element of anonymity to the blog, I generally post in rounded numbers – and honestly, it is too much work to calculate any kind of average daily balance and other approaches to valuation that would be technically correct! But one thing is consistent; it is my big-ass goal for this money is to generate 12% growth per year in the account.
Total Account Value, 11/30/2011 Statement: $51,785.53
Total Cash Reserve, 11/30/2011 Statement: $11,315.78
Core Stock Positions (as of 12/31/2011): ACM (800 shares), CAT (100 shares), COP (100 shares), CSX (200 shares), DIS (300 shares), GE (400 shares), GLW (400 shares), IP (300 shares), MSFT (400 shares)
Option Premiums Collected (net, month of December): $806
Capital Gains Collected (net, month of December): ($626)
Dividends Collected (recognized on the ex-date): $248
Interest on Cash Reserve (estimated total): $.70
Total, Absolute Return: $429
Absolute Return, Percentage Basis: .84%
Annualized Return, Percentage Basis: 10.18%
Next Month To-dos:
None of the current positions will go ex-dividend next month
Consolidated Lessons Learned:
Formal trading plan: Earlier during the month of December, I finished and published my first trading plan for the account. I am finding that I am having to make some exceptions on the stock picking requirements, mainly in terms of the rigor I had applied for S&P 4 STARS and above shares. At present, a few of the positions, including ACM, IP and CAT do not pass that hurdle. I will revisit it in a few months as these situations evolve.