The Money Tree

Safely Generating Income in Retirement

Archive for July, 2014

June 2014 Results

Posted by mounddweller on July 6, 2014

Fellow Traders,

A belated Happy Independence Day to you!  I hope each of you has had a wonderful holiday relaxing and enjoying good food, drink, and the company of friends.

To be honest I don’t have much to report this month.  Several factors limited my trading activity not the least of which is the height of the market and the record lows in the $VIX.

I only closed two trades in June.  On May 20th I sold 3 JUN EXC $33 puts at $0.35.  At expiration on June 21st these puts expired OTM.  The result was a small gain of $96.55 with a net ROIC of 0.98%.  My other closed trade was in Nucor.    On June 4th I sold two 27JUN $49 puts at $0.55.  These barely expired OTM with NUE trading at $49.09 on Friday, June 27th.  My profit was $102.05 with a net ROIC of 1.04%.

During the month I opened two new naked put trades.  On June 24th I sold 2 JUL GIS $52.50 puts at $0.50.  Also, on June 30th I sold 3 JUL NUE $48 puts at $0.56.

As I mentioned at the beginning of this post it is becoming increasingly difficult to find trades which meet my risk / reward criteria.  The $VIX is so low that the only trades with any premium are close to ATM or are on risky stocks.  Thus, I’ve limited my trades to ones where the high quality stock appears to be bouncing off the lower Bollinger band (BB).

That’s it for this month.  Best of luck to everyone one in the coming month.  Be ever vigilant!  A correction could occur when we least expect it.

Regards,

Troy

 

 

 

 

 

 

 

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