Tuesday, August 7, 2012

July 2012 Results

After so much trading in June, I decided that I would try a slower, more deliberate pace during July.  While the month was profitable, my results did not quite generate the 1% monthly I have set as a goal, but they nearly did, falling just short of $1,000.  It’s not bad while the market is still moving sideways. 
The highlight for the month was the performance of the little 200 share position in MAS that I established back in June.  I collected the dividend on that stock and it was assigned in July, as expected.  I bought the shares at a basis of $12.24, and sold July 12 contracts.  The total premium was around $135, and once the fees are taken out, I’ll get about half of that as a net gain on the position.  As I posted on establishing the MAS position, the net was nearly 2.7% return, which works out to nearly 60% annualized on a 25-day trade.   
Here are the rest of the statistics for July 2012:

Account Status:
Total Account Value, 7/31/2012 Statement:  $128,715.04, so once again the account is above the January 1 value of $127,606.44
Total Cash Reserve, 7/31/2012 Statement:  $7,653.47
Core Stock Positions (as of 8/1/2012):   ADM (300 shares), CSX (500 shares), DOW (200 shares), GE (500 shares), GLW (700 shares), HAL (300 shares), ITW (200 shares), IP (300 shares), MSFT (300 shares), SWK (100 shares), SPLS (500 shares), URS (400 shares), VIAB (100 shares), WAG (300 shares)

Performance Metrics:
Option Premiums Collected (net, month of June):  $1,014.30
Capital Gains Collected (net, month of June): -$68.38
Dividends Collected (recognized on the ex-date): $15.00
Interest on Cash Reserve (estimated total): $0.06
Total, Absolute Return:  $960.98
Absolute Return, Percentage Basis:  0.75%
Annualized Return, Percentage Basis:  9.16%

Next Month To-dos:

August should be a good month for dividends.  We’re still having some internet technical difficulties at the house, but checking my May records, I see that CSX, GLW, MSFT, and WAG are all likely to pay during August, and the new IP position does as well.  A quick calculation says that there will be about $300 from dividends this month, which will help ensure I meet the 1% goal.  September will be a similarly productive month for dividends.     

I have only one position with an August contract: 

·         IP 33 (x3)

If the IP position is assigned, it will be a three-bagger, since I will collect the option premium, a dividend (ex-date 8/13), and a stock gain.  That will be a nice change of pace from the trading for trading sake I’ve had to do at times this year. 

Since the internet problems are going on, I’ll keep this post short this month.  Hope to have everything restored within a week, so I can get back to my normal pace of posting.

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