Sunday, April 8, 2012

March 2012 Monthly Recap

For me, March 2012 was about being on the road.  I traveled every week of the month, to Indianapolis, Dallas, Baltimore, and Upstate New York.  What I found was that, combined with the market that remains relatively high and stable, it was more challenging than usual to make the numbers I have set as my goal.  While I was close, I didn’t quite get to the 1% per month benchmark.

So, while March wasn’t the best month so far, at least I didn’t lose money.  So here is the monthly recap, with the following sections:  account status, performance metrics, and a to-do list for the next month. 

Account Status:
Total Account Value, 3/31/2012 Statement:  $134,242.44
Total Cash Reserve, 3/31/2012 Statement:  $9,444.47
Core Stock Positions (as of 3/31/2012):  ACM (800 shares), COP (100 shares), CSX (400 shares), GE (500 shares), GLW (700 shares), HAL (200 shares), ITW (200 shares), MSFT (300 shares), NOC (200 shares), NVS (100 shares), SPLS (500 shares), T (300 shares), WAG (200 shares)

Performance Metrics:
Option Premiums Collected (net, month of February):  $749
Capital Gains Collected (net, month of December): $238
Dividends Collected (recognized on the ex-date): $122
Interest on Cash Reserve (estimated total): $0
Total, Absolute Return:  $1,109
Absolute Return, Percentage Basis:  0.87%
Annualized Return, Percentage Basis:  10.58%

Next Month To-dos:
There is only one stock that has an ex-date coming up:
  •        T on 4/5 (there is an April call, likely to be assigned, on this position)

There are seven covered call contracts forecast to expire in April – I’ll note in-the-money (ITM) or out-of-the-money (OTM) below:   
  •          T 31 (x3) – ITM
  •         CSX 22.5 (x4) – OTM
  •          COP 77.5 (x1) – OTM
  •          HAL 35 (x2) – OTM
  •          MSFT 33 (x3) – OTM
  •          NVS 55 (x1) – ITM
  •          WAG 35 (x3) – OTM

As in the past, as options expiration approaches I will take a look at deltas and see what is likely to be called away. 

Consolidated Lessons Learned:
Patience is a virtue:  This month, I decided not to churn or make hasty decisions.  This produced a steady return that wasn’t stellar and didn’t meet goals.  But it was a profitable month, nonetheless, because of the adherence to process in the Rescue My IRA account. 

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