The Money Tree

Safely Generating Income in Retirement

Monthly Results – FEB 2013

Posted by mounddweller on February 28, 2013

Fellow Traders,

You’ll recall last month I started a new series of posts summarizing my monthly trading results.   This being the last day of the month let’s take a look and see how I did.

Number of Closed Positions: 2

Profit on Closed Trades: $(1,338.45) – Yes, I lost money this month.  More on that later…

Total Capital Used on Closed Trades: $39,267.90

Average Number of Days Trades Were Open: 530 – No, that’s not a misprint.  Again, more on that later…

Return on Invested Captial: None, I had a realized loss of capital.

OK, before I move on to the stats for my open trades, let me tell you a little more about these closed trades and the peculiar results.  Actually, I had one losing trade and one winning trade.  The losing trade was a long-held position in EXC that was unexpectedly called away from me.  I had ITM calls that got assigned early so someone could capture EXC’s last $0.525 dividend.  I had held EXC in my account for almost 3 years.  My sale of naked puts and covered calls and the collection of quarterly dividends could not make up for the steady decline in price.  Thus, I lost about $1,500 out of the $20,500 of capital I had in this trade.  I am working to recapture that lost capital by selling a new round of naked puts.  As a result my net loss on EXC is now down to $1,200.

My other closed trade was a winner.  My 3 naked puts in YUM at the $62.50 strike expired OTM.  This resulted in a gain of $214 on $18,750 in capital in 25 days.

Now let’s look at my open trades.

Number of Open Positions: 7

Net Cash Flow in February from Open Positions: $1,288.85

Total Capital Used on Open Trades: $90,340

Net Cash Flow on Invested Capital: 1.43%

This month I am again pleased with the net cash flow on invested capital.  However, I am disappointed in the realized loss of capital from my closed trade in EXC.  I am working hard to learn to avoid sizable losses of capital.

Best of luck to all my readers as we head into March.




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