Monday, December 27, 2010

T20YM End of Year Update

It’s been an interesting month for the T20YM Portfolio. I successfully cycled into the Financial and Banking rotation before the explosion upward. This has made up for some of my losses in GLD and GOOG. I have been going for singles and doubles via Option Trading rather than home runs. This isn’t exciting, but it has been working. I will take making money, over losing money any day of the week.

Portfolio wise, I have a broad based BRIC ETF portfolio in place. I would like to add EZA and TUR on pullbacks. I am also adding to FXI on current weakness. This ‘surprise’ China tightening isn’t very surprising. They have been telling us this was going to happen for weeks.

The fixed income/preferred portion of the portfolio continue to lag. If I wasn’t overweight in PGF I would add another 100 shares. I’m not concerned about foreign bank preferred. The monthly yield is there and the ETF should be trading around $20.

I have started building my individual dividend portion of the portfolio. I plan on doubling the CIM position by the ex div date. This REIT is more attractive than NLY for multiple reasons. I think there is less risk here and it might be a position I hold long term. DEO is a small position that I will continue to build on weakness. I believe it is one of the better foreign Dividend Growth stocks and a free cash flow machine. I will look to add to the position under 72.00. WY is trading below tangible liquidation value and is looking to TRIPLE its dividend in 2011 as its transitioning to a REIT. It’s a very cheap play on housing. The dividend will allow me to hold the shares until the inevitable recovery. Other names I plan on adding to by year end are ABT and TOT.

Option wise, I am making conservative bets on the bank meltup. As you can see it is been fairly lucrative. I have already pulled in decent gains in JPM and WFC which I have sold out of. I am trailing these positions with a stop loss in order to insure gains. I think there is another 3-4 grand in these trades.


Symbol
Qty
Price Paid
Market Val
BAC Jan 21 '12 $12.50 Call
10
$1.76
2,570.00
CIM
250
$4.29
1,073.75
CSCO Mar 19 '11 $20 Call
10
$0.79
1,090.00
DEO
20
$72.08
1,482.73
DVY
50
$47.97
2,500.30
EPI
100
$25.30
2,568.00
EWZ
40
$74.45
2,959.60
EXC
50
$39.55
2,105.00
FXI
50
$43.76
2,120.18
HBAN Apr 16 '11 $6 Call
10
$0.82
1,200.00
IAU
100
$12.64
1,350.50
IDV
50
$33.12
1,650.36
JNK
51.06001
$39.58
2,063.64
JNPR Feb 19 '11 $37 Call
10
$2.03
1,880.00
MS Jan 22 '11 $26 Call
10
$1.63
1,810.00
PFF
50.86968
$39.58
1,963.01
PGF
166.94998
$17.97
2,894.58
VWO
50
$46.11
2,339.98
WY
60
$18.55
1,119.60
YHOO Feb 19 '11 $17 Call
20
$0.69
1,320.00

For the year, I am not happy with my total performance. It was one, BIG, BAD trade that really did me in. The GOOG gamble wiped out half my trading portfolio. That mistake still stings. I’m looking to learn from the mistake and continue forward. With out that one loss I would be up nearly 45% on the year… and if my sister had balls she would be my brother.

I hope your holidays went well. More updates in the new year.

All the best,

CM

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