Beating Buy and Hold (thru disciplined speculation)

[drbubb]

Thanks for asking -

The way to play ASA is through options. Because I do think it could go either way.

The main argument is that ASA is a cheap way in to a Good portfolio of Gold stocks.

But the technical set-up is mixed, and there could be a big move in either direction.

 

At just below $30, I am mostly OUT of most of my ASA $25 Calls (at a profit), or am holding a large number of almost-free Nov.$30 calls.

 

ASA closed Tuesday at: $29.80 -0.10

Open: 29.90 / High: 30.00 / Low: 29.21 // Volume: 50,667

Percent Change: -0.33%

ASA: $31.17 +1.13

Open: 30.40 / High: 31.25 / Low: 30.40 // Volume: 84,524

Percent Change: +3.76%

 

Nov.$30 Calls, closed at: 2.60 - 2.95

 

Not in my Beating B&H portfolio. But I own a bunch anyway

[drbubb]

Pity that the Turn came after options expiry.

I missed out on a nice opportunity to profit from the drop.

 

Here's a long term SLV chart I shall be watching ... update

 

[drbubb]

Record :: B&H Portf : Alt.Port #1 : Alt.Port #2 : Average : -Ratio- : -SLV- : -DXY- /--CRB-- real.SLV

12 Aug: --- $390.7 K : - $536.7K : - $541.9 K : $539.3K : 138.0% : $38.12 x74.56 / 3.2653 =# 8.704

19 Aug: --- $429.3 K : - $558.6K : - $570.4 K : $564.5K : 131.5% : $41.68 x74.24 / 3.2947 =# 9.392

26 Aug: --- $417.2 K : - $546.5K : - $558.1 K : $552.3K : 132.4% : $40.41 x73.81 / 3.3525 =# 8.897

Vs B&H: -- 100.0% - : -- 130.98% : -- 133.78% :

 

No trades - Not much change- Silver just drifted down -$1.27

 

Updated S/S: https://spreadsheets1.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0Am5S2YdB2ZxYdC1KcWgxVVpqamJhQl9zRmt2aEhPaUE&single=true&gid=0&output=html

 

Latest : 8/26/11 : 8/19/11 : 8/12/11 : 8/05/11 : 7/29/11 :

SLV-- : $40.41 : $41.68 : $38.12 : $37.61 : $38.83 :

Change: -$1.27 : +$3.56 : +$0.51 : -$1.22 : +/- chg.

Silver : $41.72 : $42.93 : $39.07 : $38.33 : $39.89 :

Prem. : +$1.31 : +$1.25 : +$0.95 : +$0.72 : +$1.06 :

ZSL-- : $11.68 : $11.33 : $13.62 : $14.33 : $13.49 :

$62-X : $50.32 : $50.67 : $48.38 : $47.67 : $48.51 :

ZX/slv : 124.5% : 121.6%: 126.9%: 126.7%: 124.9%:

====

DXY--- : $73.81 : $74.24 : $74.56 : $74.54 : $73.75 :

UUP---: $20.96 : $21.03 : $21.11 : $21.22 : $21.03 :

CRB--- : 335.25 : 329.47 : 326.53 : 326.08 : 342.08 :

Rsilver :: 8.897 : : 9.392 : : 8.704 : : 8.597 : : 8.371 : :

===

Ja.$27c: 13.97 : 15.20 : 11.87 : 11.20 : 12.42 :

Sp.$34c: $6.70 : $7.85 : $4.80 : $4.40 : /5.00/

Oc.$30c: 10.70 : 11.95 : $8.62 : $8.00 : $9.27 :

Oc.$34c: $7.15 : $8.35 : $5.45 /$4.75 /

Ja.$27c: 13.97 : 15.20 : 11.87 : 11.20 : 12.42 :

ATX.v--: $0.90 : $0.91 : $0.90 : $0.93 : $1.00 :

Paas$25c $5.00 : $5.55 : $4.80 /$4.00 /

===

Trades this week: NONE

[Havoc]

Many thanks for this very interesting thread. I have been studying options for a while, I think that they are a good alternative to B+H stratergy because they can provide better returns, but unlike spreadbetting they offer much more protection against volatility unless you have big margins to play with - I dont. I like the way you can take a leveraged position, but not need to worry about sudden market swings.

 

Anway today I joined the party and bought my first options contract - A call option on SLV. I was looking at GLD, but options on SLV are much cheaper (presumably because Price of silver is much lower in comparison to Gold) and it is much cheaper to control 100 shares of SLV through an option than 100 shares of GLD. It doesn't really matter, at this stage I am more interested in learning and making any old percentage gains rather than spinning big bucks. Here is my order:

 

Symbol:SLV Jan13 45 Call

Description:iShares Silver Trust

Stock:SLV at 40.39

Action:Bought To Open

Quantity:1 contract(s)

Price:$6.41

Commission:$14.95

Reg Fees:$0.02

Net Amt:$655.97

 

Taking the above contract the price of SLV would have to reach $51.55 ((45 strike + 6.41 premium)x 100 shares)/100) + 14.95 commision before Jan 2013 expiry for me to break even. A 20% increase in 500 or so days, I think this looks like a very aggressive position, it is an out-of-the money call so there is very little Delta, but I have lots of time left so lots of Theta to play with. Who knows, I'm just testing the waters.

 

I am going to look at a more conservative trade soon and I will share my experiences here also. I have been learning from the trades of others here and I will share mine if that is OK.

[drbubb]

Many thanks for this very interesting thread. I have been studying options for a while, I think that they are a good alternative to B+H stratergy because they can provide better returns, but unlike spreadbetting they offer much more protection against volatility unless you have big margins to play with - I dont. I like the way you can take a leveraged position, but not need to worry about sudden market swings.

 

Anway today I joined the party and bought my first options contract - A call option on SLV. I was looking at GLD, but options on SLV are much cheaper (presumably because Price of silver is much lower in comparison to Gold) and it is much cheaper to control 100 shares of SLV through an option than 100 shares of GLD. It doesn't really matter, at this stage I am more interested in learning and making any old percentage gains rather than spinning big bucks. Here is my order:

 

Symbol:SLV Jan13 45 Call

Description:iShares Silver Trust

Stock:SLV at 40.39

Action:Bought To Open

Quantity:1 contract(s)

Price:$6.41

Commission:$14.95

Reg Fees:$0.02

Net Amt:$655.97

 

Taking the above contract the price of SLV would have to reach $51.55 ((45 strike + 6.41 premium)x 100 shares)/100) + 14.95 commision before Jan 2013 expiry for me to break even. A 20% increase in 500 or so days, I think this looks like a very aggressive position, it is an out-of-the money call so there is very little Delta, but I have lots of time left so lots of Theta to play with. Who knows, I'm just testing the waters.

 

I am going to look at a more conservative trade soon and I will share my experiences here also. I have been learning from the trades of others here and I will share mine if that is OK.

Good luck with that - a useful learning experience.

 

As you will see on the thread I generally buy in-the-money options (where the Price is already above the strike of a Call) since I like to have a low breakeven point. Saying it another way, I would like to waste as little as possible on "time value."

 

With the option you bought, you will want a big move quickly.

[drbubb]

Latest : 9/02/11 8/26/11 : 8/19/11 : 8/12/11 : 8/05/11 : 7/29/11 :

SLV-- : $42.18 : $40.41 : $41.68 : $38.12 : $37.61 : $38.83 :

Change: +$1.77 : -$1.27 : +$3.56 : +$0.51 : -$1.22 : +/- chg.

Silver : $43.26 : $41.72 : $42.93 : $39.07 : $38.33 : $39.89 :

Prem. : +$1.08 : +$1.31 : +$1.25 : +$0.95 : +$0.72 : +$1.06 :

ZSL-- : $10.70 : $11.68 : $11.33 : $13.62 : $14.33 : $13.49 :

$62-X : $51.30 : $50.32 : $50.67 : $48.38 : $47.67 : $48.51 :

ZX/slv : 121.6% : 124.5% : 121.6%: 126.9%: 126.7%: 124.9%:

====

DXY--- : $75.25 : $73.81 : $74.24 : $74.56 : $74.54 : $73.75 :

UUP---: $21.22 : $20.96 : $21.03 : $21.11 : $21.22 : $21.03 :

CRB--- : 338.06 : 335.25 : 329.47 : 326.53 : 326.08 : 342.08 :

Rsilver :: 9. ??? : : 8.897 : : 9.392 : : 8.704 : : 8.597 : : 8.371 : :

===

Ja.$27c: 15.45 : 13.97 : 15.20 : 11.87 : 11.20 : 12.42 :

Sp.$34c: $8.20 : $6.70 : $7.85 : $4.80 : $4.40 : /5.00/

Oc.$30c: 12.27 : 10.70 : 11.95 : $8.62 : $8.00 : $9.27 :

Oc.$34c: $8.52 : $7.15 : $8.35 : $5.45 /$4.75 /

Ja.$27c: 15.45 : 13.97 : 15.20 : 11.87 : 11.20 : 12.42 :

ATX.v--: $0.79 : $0.90 : $0.91 : $0.90 : $0.93 : $1.00 :

ZSL$10c: $1.00 / $1.15 /

Paas$25c $8.60 : $5.00 : $5.55 : $4.80 /$4.00 /

===

Trades this week: ONE for each account.

 

(In edit: I have left out a ZSL options trade that was triggered

after I went to bed on Friday night) :

 

CALL (ZSL) PROSHARES TR II SEP 17 11 $10 : 2,000 each Portfolio

Price: $1.15

[drbubb]

From DrB's Diary / Playing a possible double Top in Gold...

 

I have been implementing a complex trading strategy to capture profits on my GLD calls

 

I owned some GLD$120calls purchased at less than $20, that I sold last week at $59.

(That's like a $390 profit from Gold.)

 

When I sold them I did not want to be out of Gold, so I...

 

BOUGHT: Oct.UGL.$106 calls at $12.50 last week when UGL was about $111.

 

(Note: UGL is a 2x geared version of GLD.)

 

Today, I noticed that with GLD at $185, my GLD calls would have been worth $65,

so selling at $58 has left me with an "opportunity loss" $6.

 

How'd UGL do?

It was at $121.69, that's up $10.69 (or 178% as much as Gold.)

 

At over $1910 per oz. on light volume, Gold "looked toppy".

But I was unwilling to dump my UGL calls. So instead I...

 

SOLD: Oct.UGL.$130 calls at $7.00, and was lucky to get the trade off.

 

I now have a potential gain of $130-$106=$24, at a cost of $5.50.

 

With GLD now at: $181.48, UGL has slipped to $116.54.

[Pal]

From DrB's Diary / Playing a possible double Top in Gold...

 

That's an interesting strategy DB. I suggested something similar in my "Protecting gold profits" thread. I like the idea of selling a call rather than sell out completely when the underlying appears over extended. What is your opinion of taking extra premium by turning this into a strangle?

 

I think most agree that the gold bull has further to run, perhaps much further, but that doesn't mean that we shouldn't discuss ways to capture some of the profit when a pullback seems likely.

[drbubb]

That's an interesting strategy DB. I suggested something similar in my "Protecting gold profits" thread. I like the idea of selling a call rather than sell out completely when the underlying appears over extended. What is your opinion of taking extra premium by turning this into a strangle?

 

I think most agree that the gold bull has further to run, perhaps much further, but that doesn't mean that we shouldn't discuss ways to capture some of the profit when a pullback seems likely.

Yes, that may make good sense... if prices fall big, it will work well.

But GLD and UGL volatilities are very high now, and I would rather be a seller of Vol.

[Pal]

Please feel free to move this if it's posted in the wrong place.

 

This thread has inspired me to look at various option strategies to improve perfomance on paper gold and limit risk. One strategy I'm considering, which I'd like opinions on, is:

 

Buy in the money option eg. 1810 Dec call for 137 (current gold 1878)

Sell out of the money option 1980 Dec call for 68 (same underlying price)

 

This effectively means I'm paying no Theta (time value) and my downside risk is limited to 69 (137-68). My upside is also limited as any gains above 1980 are cancelled out with this stratgey but the risk:reward seems quite good as this would be a likely price range for the time period.

 

This would not be for all holding but as a supplement to buy:hold

[drbubb]

Buy in the money option eg. 1810 Dec call for 137 (current gold 1878)

Sell out of the money option 1980 Dec call for 68 (same underlying price)

Buy the Reality, and Sell the Dream

 

A better strategy than an outright long, I reckon

[drbubb]

Switching today

From:

Ja.$27c: 15.45 : last week

To:

Oc.$34c: $8.52 : last week

 

This way, I keep upside, with less downside.

at $40.48:

13.90 - 14.05 : Jan.27c

$6.95 - $7.05 : Oct.34c

Others

36c : 5.35-5.40

38c : 3.90-3.95

40c : 2.76-2.78

==== ====

 

In Edit / Spreads at Mid-Point...

 

I swap:

2,000 Jan.$27 calls (at $13.95), each portfolio into:

 

2,000 Oct.$38c ($3.98) in Alt.P#1: Net Cash in: $9.97

2,000 Oct.$34c ($7.00) in Alt.P#2: Net Cash in: $6.95

[drbubb]

Latest : 9/09/11 9/02/11 8/26/11 : 8/19/11 : 8/12/11 : 8/05/11 : 7/29/11 :

SLV-- : $40.52 : $42.18 : $40.41 : $41.68 : $38.12 : $37.61 : $38.83 :

Change: - $1.66 : +$1.77 : -$1.27 : +$3.56 : +$0.51 : -$1.22 : +/- chg.

Silver : $41.43 : $43.26 : $41.72 : $42.93 : $39.07 : $38.33 : $39.89 :

Prem. : +$0.91 : +$1.08 : +$1.31 : +$1.25 : +$0.95 : +$0.72 : +$1.06 :

ZSL-- : $11.51 : $10.70 : $11.68 : $11.33 : $13.62 : $14.33 : $13.49 :

$62-X : $50.49 : $51.30 : $50.32 : $50.67 : $48.38 : $47.67 : $48.51 :

ZX/slv : 120.0% : 121.6% : 124.5% : 121.6%: 126.9%: 126.7%: 124.9%:

====

DXY--- : $77.20 : $75.25 : $73.81 : $74.24 : $74.56 : $74.54 : $73.75 :

UUP---: $21.91 : $21.22 : $20.96 : $21.03 : $21.11 : $21.22 : $21.03 :

CRB--- : 334.24 : 338.06 : 335.25 : 329.47 : 326.53 : 326.08 : 342.08 :

Rsilver : : 9. ??? : : 9. ??? : : 8.897 : : 9.392 : : 8.704 : : 8.597 : : 8.371 : :

===

Ja.$27c: 13.97 : 15.45 : 13.97 : 15.20 : 11.87 : 11.20 : 12.42 :

Sp.$34c: $6.55 : $8.00 : $8.20 : $6.70 : $7.85 : $4.80 : $4.40 : /5.00/

Oc.$30c: 10.72 : 12.27 : 10.70 : 11.95 : $8.62 : $8.00 : $9.27 :

Oc.$34c: $7.02 : $8.52 : $7.15 : $8.35 : $5.45 /$4.75 /

Oc.$38c: $3.95 / $3.98 /

Ja.$27c: 13.97 : 15.45 : 13.97 : 15.20 : 11.87 : 11.20 : 12.42 :

ATX.v--: $0.80 : $0.79 : $0.90 : $0.91 : $0.90 : $0.93 : $1.00 :

ZSL$10c: $1.65 : $1.00 / $1.15 /

Paas$25c $8.65 : $8.60 : $5.00 : $5.55 : $4.80 /$4.00 /

===

Trades this week:

SLD : SLV Jan.$27c: 13.95 x 2,000 = $27,900 (+) Alt.1

BOT : SLV Oct.$38c: $3.98 x 2,000 = $ 7,960 (-) Alt.1

SLD : SLV Jan.$27c: 13.95 x 2,000 = $27,900 (+) Alt.2

BOT : SLV Oct.$34c: $7.00 x 2,000 = $14,000 (-) Alt.2

Trades last week:

ONE for each account:

CALL (ZSL) PROSHARES TR II SEP 17 11 $10 : 2,000 each Portfolio

Price: $1.15

[drbubb]

OUTPERFORMANCE recovered a bit during the latest week...

 

RECORD

Record :: B&H Portf : Alt.Port #1 : Alt.Port #2 : Average : -Ratio- : -SLV- : -DXY- /--CRB-- real.SLV

 

01 July: --- $337.0 K : - $479.2K : - $465.2 K : $472.2K : 140.1% : $33.00 x74.36 / 3.3671 =# 7.288

08 July: --- $365.4 K : - $508.5K : - $498.1 K : $503.3K : 137.8% : $35.75 x75.08 / 3.4355 =# 7.813

15 July: --- $390.7 K : - $535.8K : - $532.8 K : $534.3K : 136.8% : $38.24 x75.13 / 3.4650 =# 8.291

22 July: --- $401.0 K : - $541.4K : - $539.8 K : $540.6K : 134.8% : $39.07 x74.14 / 3.4793 =# 8.325

29 July: --- $398.9 K : - $539.7K : - $537.1 K : $538.4K : 135.0% : $38.83 x73.75 / 3.4208 =# 8.371

05 Aug: --- $383.3 K : - $534.4K : - $538.9 K : $536.6K : 140.1% : $37.61 x74.54 / 3.2608 =# 8.597

12 Aug: --- $390.7 K : - $536.7K : - $541.9 K : $539.3K : 138.0% : $38.12 x74.56 / 3.2653 =# 8.704

19 Aug: --- $429.3 K : - $558.6K : - $570.4 K : $564.5K : 131.5% : $41.68 x74.24 / 3.2947 =# 9.392

26 Aug: --- $417.2 K : - $546.5K : - $558.1 K : $552.3K : 132.4% : $40.41 x73.81 / 3.3525 =# 8.897

02 Sep: --- $432.6 K : - $560.6K : - $572.8 K : $566.7K : 131.0% : $42.18 x75.25 / 3.3806 =# 9.389

09 Sep: --- $414.3 K : - $544.9K : - $557.2 K : $551.1K : 133.0% : $40.52 x77.20 / 3.3424 =# 9.019

Vs B&H: -- 100.0% - : -- 131.50% : -- 134.47% :

 

At 9 Sept., the average of the two Alt. Portfolios was $136,763 ahead of Buy&Hold.

 

Versus $135,200 ahead at 1 July when the Outperformance was 140.1%,

and $153,343 at 5 Aug., when Silver had fallen to $38.33.

 

 

You may notice / see spreadsheet : https://spreadsheets1.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0Am5S2YdB2ZxYdC1KcWgxVVpqamJhQl9zRmt2aEhPaUE&single=true&gid=0&output=html

 

How I have retained 10,000 oz./SLV shares as a long position (matching B&H),

but recently took some profits on deep-in-the-money SLV.Jan.$27 calls, shifting into Oct.$34calls and

Oct.$38calls. I also hold calls on ZSL. If Silver now drops sharply, I am somewhat shielded, and

I should be able to show some outperformance. But it Silver runs to the upside, the 10,000 Longs

will keep me in the game.

[drbubb]

Silver (and Gold) could be set for another big slide soon,

if the uptrend is broken - it should be tested soon

 

SLV chart ... update

 

While retaining a core 10,000 oz/SLV-share Long position,

I have put some Hedges in place, which should allow me to increase outperformance if Silver slides.

[Pixel8r]

Silver (and Gold) could be set for another big slide soon,

if the uptrend is broken - it should be tested soon

 

SLV chart ... update

 

While retaining a core 10,000 oz/SLV-share Long position,

I have put some Hedges in place, which should allow me to increase outperformance if Silver slides.

Out of interest how much have these hedges cost you to put in place?

[alexays]

Incidentally I have a spreadbet short in $ with my core position in £ retained (as the pound seems to be falling significantly against the dollar). It is looking horribly like 2008 when silver fell below $10. I can easily see it going down to $30. Its up 100% in a year. Too much too soon and traders may be swapping for beaten up oil stocks which are beginning to look cheap. The other thing I am concerned about is if the banks collapse who is going to buy precious metals then? I guess the far east - but pretty much everyone in affected countries will be selling. Silver and Gold could fall even as everything else falls faster.

[drbubb]

Out of interest how much have these hedges cost you to put in place?

Here's one from over a week ago...

 

ZSL- Sept.$10 calls : Inverse 2x etf

 

BOT 2,000 in each account at $1.15

 

and just...

 

SOLD half:

Status Filled at $2.25

Symbol -ZSL110917C10

Description CALL (ZSL) PROSHARES TR II SEP 17 11 $10 (100 SHS)

Action Sell to Close Call

 

That will be for the Alt.P#2

 

Will try a higher price ($2.90?) for the Alt.P#1 Calls

 

They expire Friday, so I wanted to lighten up,

and with that sale, the remaining calls are virtually "free" -

Paid for by the ones just sold.

 

My other hedges meant:

Swapping $27calls into $34 and $38 calls -

Cashing a nice profit: They cost $8.04, sold them at $13.95.

 

/see: https://spreadsheets1.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0Am5S2YdB2ZxYdC1KcWgxVVpqamJhQl9zRmt2aEhPaUE&single=true&gid=0&output=html

[drbubb]

...The other thing I am concerned about is if the banks collapse who is going to buy precious metals then? I guess the far east - but pretty much everyone in affected countries will be selling. Silver and Gold could fall even as everything else falls faster.

There will be some sellers, because the Banks will want their Margin loans back from HF's

[bob monkhouse]

Incidentally I have a spreadbet short in $ with my core position in £ retained (as the pound seems to be falling significantly against the dollar). It is looking horribly like 2008 when silver fell below $10. I can easily see it going down to $30. Its up 100% in a year. Too much too soon and traders may be swapping for beaten up oil stocks which are beginning to look cheap. The other thing I am concerned about is if the banks collapse who is going to buy precious metals then? I guess the far east - but pretty much everyone in affected countries will be selling. Silver and Gold could fall even as everything else falls faster.

 

I think you have summed up the gut feeling I have been getting (this could be a bad thing as I know next to nothing!).

 

Im looking at Petrofac at the moment

[drbubb]

That spreadsheet is extremely confusing

Here's the key part to focus on: The Summary of the three portfolios:

 

9/9/2011 : Buy&Hld Alt Port#1 Alt Port#2 Average

 

Cash- in $ - - - None - $360,320 $340,825 $350,573

Silver Oz. s 010,000 : 003,000 : 002,000

SLV - Sh. - - - None - 000.000 : 002,000

/ Value = = $414,300 $124,290 $163,900 $144,095

 

Opt. Sh.+ - - - None - 007,000 : 006,000

Opt. Sh. - - - - None - 007,000 : 002,000

Note - - - - - - - None - - c1,e1,f1,z c2,d2,e2,f2

Opt.Value - - - None - $52,210 : $44,380 : $48,295

 

Note - - - - - - - None - - - ATX.v - - - ATX.v -

Eqy. Shs.+ - - - None - 010,000 : 010,000

Eqy.Value - - - None - $08,000 : $08,000 : $008,000

 

Tot. Value $414,300 $544,820 $557,105 $550,963

 

Column 2 - The B&H portfolio : worth $414,300

Column 3 - Alternative portfolio #1 : $544,820, of which $360,320 is cash.

Column 3 - Alternative portfolio #2 : $557,105

Column 4 - Average of AltP#1 & AP#2 : $550,963

 

What's confusing about it?

It is very compact, with lots of info in little space, but not confusing if you have used it.

 

Here's an explanation to go with Alt.P#1:

Positions

Silver Oz. s: 003,000 - that's physical Silver

Opt. Sh. + +: 007,000 - SLV shares controlled through options

Total Longs : 010,000 - Total of physical silver and SLV shares

 

Just below that Key part,

are the individual Option & other positions:

 

OPTIONS / BOT at .Qty. Now at: Value = profit

Alt.Port#1

c1:oct$38c $3.98 2,000 $3.95 $7,900 -$60

d1:oct$34c $5.90 2,000 $7.02 $14,040 $2,240

e1:jan$27c $8.10 1,000 $13.97 $13,970 $5,870

f1:sep$34c $5.00 2,000 $6.55 $13,100 $3,100

zsl:sp$10c $1.15 2,000 $1.60 $3,200 $900

Long AP#1: ==== 7,000 ==== $52,210 $12,050

 

Alt.Port#2

c2:aug$34c $4.00 0 $0.00 $0 $0

d2:oct$34c $5.88 4,000 $7.02 $28,080 $4,580

e2:jan$27c $7.97 0 $13.97 $0 $0

f2:sep$34c $5.00 2,000 $6.55 $13,100 $3,100

zsl:sp$10c $1.15 2,000 $1.60 $3,200 $900

paas:s$25c $4.00 0 $8.65 $0 $0

Long AP#2: ==== 6,000 ==== $44,380 $8,580

 

EQUITIES / BOT at .Qty. Clse at: Value = profit

P1: ATX.v $1.10 10,000 $0.80 $8,000 -$3,000

P2: ATX.v $1.10 10,000 $0.80 $8,000 -$3,000

 

/see: https://spreadsheets1.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0Am5S2YdB2ZxYdC1KcWgxVVpqamJhQl9zRmt2aEhPaUE&single=true&gid=0&output=html

[drbubb]

What options are these ???

c1:oct$38c $3.98 2,000 $3.95 $7,900 -$60

d1:oct$34c $5.90 2,000 $7.02 $14,040 $2,240

e1:jan$27c $8.10 1,000 $13.97 $13,970 $5,870

What is C1?

 

c1: SLV-oct$38call / cost: $3.98 / shares: 2,000 / price: $3.95 / value; $7,900 / profit: -$60

d1: SLV-oct$34call / (as above)

e1: SLV-jan$27call /

 

Q: "What is C1?"

I might get rid of these labels if they confuse...

C1 = c1: SLV-oct$38call

 

Perhaps putting "SLVoct$38c" rather than "c1: oct$38c" would be better...

 

Would dropping the c1 label be less confusing?

[planit]

Here's the key part to focus on: The Summary of the three portfolios:

 

9/9/2011 : Buy&Hld Alt Port#1 Alt Port#2 Average

 

Cash- in $ - - - None - $360,320 $340,825 $350,573

Silver Oz. s 010,000 : 003,000 : 002,000

SLV - Sh. - - - None - 000.000 : 002,000

/ Value = = $414,300 $124,290 $163,900 $144,095

 

Opt. Sh.+ - - - None - 007,000 : 006,000

Opt. Sh. - - - - None - 007,000 : 002,000

Note - - - - - - - None - - c1,e1,f1,z c2,d2,e2,f2

Opt.Value - - - None - $52,210 : $44,380 : $48,295

 

Note - - - - - - - None - - - ATX.v - - - ATX.v -

Eqy. Shs.+ - - - None - 010,000 : 010,000

Eqy.Value - - - None - $08,000 : $08,000 : $008,000

 

Tot. Value $414,300 $544,820 $557,105 $550,963

 

Column 2 - The B&H portfolio : worth $414,300

Column 3 - Alternative portfolio #1 : $544,820, of which $360,320 is cash.

Column 3 - Alternative portfolio #2 : $557,105

Column 4 - Average of AltP#1 & AP#2 : $550,963

 

What's confusing about it?

It is very compact, with lots of info in little space, but not confusing if you have used it.

 

Here's an explanation to go with Alt.P#1:

Positions

Silver Oz. s: 003,000 - that's physical Silver

Opt. Sh. + +: 007,000 - SLV shares controlled through options

Total Longs : 010,000 - Total of physical silver and SLV shares

 

Just below that Key part,

are the individual Option & other positions:

 

OPTIONS / BOT at .Qty. Now at: Value = profit

Alt.Port#1

c1:oct$38c $3.98 2,000 $3.95 $7,900 -$60

d1:oct$34c $5.90 2,000 $7.02 $14,040 $2,240

e1:jan$27c $8.10 1,000 $13.97 $13,970 $5,870

f1:sep$34c $5.00 2,000 $6.55 $13,100 $3,100

zsl:sp$10c $1.15 2,000 $1.60 $3,200 $900

Long AP#1: ==== 7,000 ==== $52,210 $12,050

 

Alt.Port#2

c2:aug$34c $4.00 0 $0.00 $0 $0

d2:oct$34c $5.88 4,000 $7.02 $28,080 $4,580

e2:jan$27c $7.97 0 $13.97 $0 $0

f2:sep$34c $5.00 2,000 $6.55 $13,100 $3,100

zsl:sp$10c $1.15 2,000 $1.60 $3,200 $900

paas:s$25c $4.00 0 $8.65 $0 $0

Long AP#2: ==== 6,000 ==== $44,380 $8,580

 

EQUITIES / BOT at .Qty. Clse at: Value = profit

P1: ATX.v $1.10 10,000 $0.80 $8,000 -$3,000

P2: ATX.v $1.10 10,000 $0.80 $8,000 -$3,000

 

/see: https://spreadsheets1.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0Am5S2YdB2ZxYdC1KcWgxVVpqamJhQl9zRmt2aEhPaUE&single=true&gid=0&output=html

 

Thanks for that explanation, I too was a bit confused but it's clear now

[drbubb]

Thanks for that explanation, I too was a bit confused but it's clear now

Hopefully, the reformating I have done will make it easier to read for newcomers

[drbubb]

With SLV at $40.05...

 

BUY order in on ZSL Sep.$10 calls : BOT at $1.80 (x 3,000)

 

SElling:

Sp.$34c: $6.55 - as valued, last friday

 

SOLD At $6.02 (x2,000 each acct)

 

In edit, after small drop

 

BOT half as much (1,000 oz) Physical Silver at $40.97 (Alt.P#2)