MCM August 2012 PORTFOLIO RESULTS.
MCM August 2012 Portfolio #1 results.
Our August Portfolio #1 got hit for a $6,060 loss, all coming the last week with the exception of SHAW. Between an unexpected BUY out (SHAW), A potential Leverage buyout announcement (BBY), and 5 issues all comimg after us in the last 8 trading days of the month,even trading stops could have helped reduce the pain, as these position gapped up overnight and on the openings.
Anyway, we will go on to September and quickly try and get back on the right track.
the complete individual portfolio #1 performance can be seen in the PORTFOLIO section of the newsletter.
We currently have 4 open September positions in PORTFOLIO #1 and will be adding several spreads this weekend for the September expiration cycle.
Portfolio #2 August results.
Our August Portfolio #2 faired little better as it suffered a $3,900 loss for the month.
It was unfortunate that TM, IBM and CHRW all made large gap moves during Wednesday and Thursday just before expiration Friday.
If we would have had a crystal ball We could have closed Wednesday or Thursday and would and minimized the loss, and even having a chance at being slightly profitable for the month.
But, that is hind sight and that is not worth anything.
One gap opening you can stand, maybe 2, but 3 gap openings and run ups, even tight stops would have not really saved us here, as they would have jumped over any stop price.
Late Volatility near exit prices and overnight gaps led to the inability to get out of positions at more favorable prices than normal.
However, going forward we are going to supply much tighter STOP loss prices and they will be issued immediately with the recommendations.
We will be subject to more stop outs because of the tighter stops,
but we wil be able to make it up by the ability to take the loss quicker and move on to potentially more profitable positions.
Late Volatility and overnight gaps lead to the inability to get out of positions at more favorable prices.
In conclusion, the complete portfolio #2 performance can be seen in the PORTFOLIO section of newsletter later tonight.
We currently have 2 open September positions and an iron condor in PORTFOLIO #2.
We are hoping to get back on the right track and will be adding several spreads this weekend for the September expiration cycle and from here on the new recommendations in Portfolio #2 will have much tighter stops on them.
Hopefully, we will be getting on the right track again.
We will be sending also sending out the September watch list a little later tonight it not sooner,at the latest.
Starting in October I will adding a portfolio that uses the Stock price to trigger the exit price. The only problem will be we won't know exactly what the final exit price will be of the option if we need to close it out, but we will be out sooner.