- Doubled down on Frontline (FRO) and added 50% more Harris (HRS) with about 3.5% of our total portfolio value.
- Added Becton Dickson (BDX) with about 2.5% of our total portfolio value.
- Wrote cash covered puts on Automatic Data Processing (ADP) Jan 2011 40 at $2.11 and Ameritrade (AMTD) Feb 2011 15 at $1.35. The cash coverage requirement for the combined position is about 4.5% of our total portfolio value.
- Added about 6% of our total portfolio value in cash. As mentioned in the update last month, this is part of a nest egg that was built up in the last year, being put to work.
The cash coverage requirements on the puts account for about 30% of our cash position. Despite portfolio additions, the cash position in our portfolio is still pretty high at around 47%. We will continue to use cash-covered puts along with direct puchases spread-out over a period of time to build the portfolio.
Below is our updated portfolio – it is aound 2% in the red:
| Stock | Buy Date | Buy Price | Current Price | Current % Of Portfolio | Unrealized % Return | Yield as % of Portfolio Value |
| Altria (MO) | Various | 16.69 | 21.46 | 1.23 | 28.62 | 0.10 |
| Philip Morris International (PM) | 1/4/2005 | 32.19 | 50.10 | 1.92 | 55.63 | 0.11 |
| Kraft Foods (KFT) | Various | 26.33 | 29.32 | 2.25 | 11.37 | 0.11 |
| Pfizer (PFE) | Various | 24.37 | 14.87 | 1.43 | (38.98) | 0.07 |
| ICICI Bank (IBN) | 5/18/2006 and 08/01/2008 | 25.28 | 38.72 | 3.71 | 53.19 | 0.17 |
| Advantage Energy Fund (AAV) | 11/2/2006 | 3.85 | 6.45 | 0.62 | 67.53 | 0.10 |
| Central Europe & Russia Fund (CEE) | Various | 39.23 | 33.59 | 2.25 | (14.37) | 0.01 |
| Itron Inc. (ITRI) | 11/07/2007 | 85.01 | 63 | 1.21 | (25.98) | None |
| Anthracite (ACPIQ – formerly AHR) | 11/09/2007 | 7.97 | 0.009 | 0.00 | (99.89) | 0.00 |
| iRobot (IRBT) | 12/18/2007 | 18.65 | 19.38 | 1.49 | 4.81 | None |
| LDK Solar (LDK) | 01/22/2008 | 30.49 | 6.02 | 0.35 | (80.26) | None |
| Aegon N.V. (AEG) | 04/28/2008 | 15.99 | 5.86 | 0.34 | (63.34) | 0.00 |
| Frontline Limited (FRO) | 10/06/2008 | 36.95 | 30.83 | 1.77 | (6.19) | 0.06 |
| DryShips Incorporated (DRYS) | 02/09/2009 | 6.96 | 4.05 | 0.54 | (41.84) | 0.00 |
| Plum Creek Timber (PCL) | 07/23/2009 | 30.50 | 36.91 | 2.83 | 21.02 | 0.17 |
| CPFL Energia S.A. (CPL) | 07/28/2009 | 50.45 | 67.68 | 2.60 | 34.15 | 0.21 |
| BP plc (BP) | 08/05/2009 | 51.49 | 38.92 | 1.49 | (24.41) | 0.10 |
| AT&T (T) | 08/27/2009 | 26.38 | 25 | 1.92 | (5.25) | 0.13 |
| Sysco Corporation (SYY) | 10/13/2009 | 25.23 | 30.18 | 2.32 | 19.60 | 0.10 |
| Exelon (EXC) | 12/30/2009 | 49.38 | 41.76 | 2.40 | (15.44) | 0.21 |
| Telefonica SA (TEF) | 02/09/2010 | 68.74 | 64.20 | 2.46 | (6.67) | 0.29 |
| Vonage Holdings (VG) | 04/06/2010 | 1.51 | 2.42 | 0.93 | 59.80 | 0 |
| Archer Daniels Midland (ADM) | 04/23/2010 | 28.27 | 26.87 | 2.06 | (4.97) | 0.09 |
| Intel Corporation (INTC) | 04/23/2010 | 23.98 | 21.51 | 2.06 | (10.30) | 0.11 |
| Google Inc. (GOOG) | 05/03/2010 | 528.36 | 494 | 1.89 | (6.50) | 0 |
| Cardinal Health (CAH) | 05/06/2010 | 34.42 | 35.88 | 2.06 | 4.24 | 0.08 |
| Pearson PLC (PSO) | 05/06/2010 | 14.32 | 14.63 | 1.96 | 2.14 | 0.19 |
| Nokia (NOK) | 05/14/2010 | 10.35 | 8.86 | 1.70 | (14.40) | 0.17 |
| Harris (HRS) | 06/07/2010 | 45.65 | 44.74 | 2.57 | 0.78 | 0.09 |
| Beckton Dickson (BDX) | 06/23/2010 | 70.20 | 69.36 | 2.66 | (1.20) | 0.11 |
| Cash | 46.96 | |||||
| Total Portfolio | (2.11) | 2.67 |
Below is a summary of transactions during the year:
| Stock | Buy Date | Buy Price | Sell Date | Sell Price | % Gain (Loss) | % Portfolio Return* |
| Ameritrade (AMTD) | 5/21/2008 | 17.69 | 01/19/2010 | 17.45 | (1.33) | (0.02) |
| AMTD Jan 17.5 Covered Calls (TQAAW) | 1/19/2010 | NA | 9/10/2009 | NA | NA | 0.22 |
| COST Jan 60 Covered Calls (PRQAL) | 1/19/2010 | NA | 9/10/2009 | NA | NA | 0.06 |
| IBN Mar 40 Covered Calls (ITZCN) | 1/22/2010 | NA | 10/06/2009 | NA | NA | 0.20 |
| Costco (COST) | 8/01/2009 | 62.27 | 02/09/2010 | 58.18 | (6.57) | (0.08) |
| Realized Gain/(Loss) YTD | - | - | - | - | - | 0.04 |
- % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
- The table assumes realization of profits associated with selling options only after the option is exercised or expiry.
We have covered calls written against 40% of our ICICI Bank (IBN) shares (Sep 2010 40) and 100% of our Advantage Energy Fund (AAV) shares (Aug 2010 7.5). We also have cash covered puts on Glaxo (GSK) shares (Jan 2011 35), Nucor Steel (NUE) shares (Jan 2011 40), Nutrisystem (NTRI) shares (Sep 2010 17.5), Emerson Electric (EMR) shares (Sep 2010 43), Automatic Data Processing (ADP) shares (Jan 2011 40), and Ameritrade (AMTD) shares (Feb 2011 15) with a cash coverage requirement of about 30% of our cash position.
We added Darden’s (DRI) to our watch list. Our current watch list follow – Air Products & Chemicals (APD), Brown-Foreman (BF-B), BHP Billiton (BHP), Caterpillar (CAT), Cresud (CRESY), Disney (DIS), AgFeed (FEED), Goldman Sachs (GS), Home Depot (HD), McDonalds (MCD), China Nepstar (NPD), NYSE Euronext (NYX), Owens & Minor (OMI), Pitney Bowes (PBI), Qiagen (QGEN), UPS (UPS), VF Corporation (VFC), and Waste Management (WM).
0 Comments::
Post a Comment