The purpose of this blog is to track 20 common stocks for a full year. The idea is to beat the S & P 500 like a mutual fund without the very high churn rate. These stocks will be held in a portfolio until next December 31.

Saturday, March 17, 2012

March 18 buy list update

Today the March Option contracts expire.
This is the update.

S and P 500  = 11.65%
Buylist = 8.35%
Option list = 7.6%

Notes:  Our buylist is performing 3% below the S and P 500.  That is ok.  Hopefully if there is a reverse in the market, our lower beta will reduce the pain.

Our option list lost BBBY, KO and MO. to being called.
We re-sold contracts for F, PG and SYK.
Currently we have $6,000,000 in cash in the account, and we have locked in $611,000 in hard profits.
This means we have 40% of the risk of the buylist for .7% less gain.
I am still expecting a drop in the market. I believe there will be a consolidation in April and it will maintain until after the election. We will buy back positions and sell calls as we retrace to our original position, unless the market looks really bad and then we will just wait.

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