Sunday, August 30, 2009

Weekly Recap - Stock Options

Market Beating Options: Looking for more Call Options

The Aggressive Portfolio (Options) had another strong week bringing the Year To Date return to 13.4%. We are not surprised at the big jump in performance. The aggressive nature of options trading can bring big moves in portfolio performance. We expect to beat the market by a large margin again this year. Options trading has been very lucrative for us. We now have an incredible 299% return since inception in January 2007. Yes there is higher risk, but we think that risk is worth returns like these. Our short spread position on the VIX continues to gain ground as the September expiration approaches. Options lose value as their expiration date approaches, which benefits short positions. All of our option positions increased in value except AgFeed Industries. AgFeed stock has come under pressure this month and that has reduced the value of our call position. The call does not expire until February 2010 so there is still time for this one to recover. As for future plans, we have cash to invest in this portfolio, and we remain optimistic regarding an overall positive trend over the next six months. In that light, we are looking for additional option buying opportunities and plan to increase allocations over the near term.

Portfolio Details Available Online At: http://www.marketbeatingstocks.com

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