Saturday, September 1, 2012

August 2012 - Results

We watched all time highs come and go this month in the stock market.  Yet, there were still earnings disappointments, and inside of the trend a lot of volatility.  I exited my ADM position at a loss, but made it up for the most part by the end of the month.  So, excluding capital losses, the Rescue My IRA made just about 1% return this month, but at the end of the day, was breakeven. 

Some of my positions are trading at prices above the strike prices I have for them, and others are below.  On the whole, though, the account is in positive territory for the year.  The highlight for the month was the performance of IP, a stock I’ve traded four times now since starting the account – and once again returned a hat trick (stock gain, option premium, and dividend) during a short-term trade.  I can live with that.

Here are the rest of the statistics for August 2012:

Account Status:
Total Account Value, 8/31/2012 Statement:  $128,808.53, so once again the account is above the January 1 value of $127,606.44.
Total Cash Reserve, 8/31/2012 Statement:  $7,101.53
Core Stock Positions (as of 8/1/2012):   CAT (100 shares), CSX (500 shares), DOW (200 shares), GE (500 shares), GLW (700 shares), HAL (300 shares), HPQ (400 shares), ITW (200 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 August):  $980.95
Capital Gains Collected (net, month of August): -$1,448.16
Dividends Collected (recognized on the ex-date): $370.00
Interest on Cash Reserve (estimated total): $0.06
Total, Absolute Return:  -$97.15
Absolute Return, Percentage Basis:  -0.08%
Annualized Return, Percentage Basis:  -0.93%

Next Month To-dos:

Like August, September will be a good month for dividends.  Checking my June records, I see that DOW, GE, HAL, ITW, SPLS, SWK, and URS are all likely to pay during this month.  A quick calculation says that there will be about $400 from dividends this month, which will help ensure I meet the 1% goal. 

I have only one position with an August contract: 

·         VIAB 47 (x1)
·         CSX 22.50 (x7)
·         GE 20 (x5)

All of these positions are In-the-Money as of September1, and if they are assigned this month, I will take capital gains in the amount of just about $755.  There’s a chance of an early call on VIAB and GE, and if that happens so I don’t collect their dividends, I stand to make just about $1,000 just sitting tight.

But you know that’s not gonna happen.

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