Mechanical Investing for October 2007 (Update)

October 25, 2007

Mechanical Investing for October 2007 (Update)

Yes, the market ha been topsy-turvy (isn’t it always?), but some of the 6/3 options from a couple of weeks back have done well. When they hit about 400% return, these options begin to move like the underlying stock, so it’s time to sell the option and but something further out of the market. One of them did that, so I made the following changes today –

6/3 Options:

Ticker	Bought	Sold	Months	Return
AXVDJ	$27.30	$97.90	.75	+358%	ISRG Apr 2008 250 Calls. Sold early, replaced by CUBDJ.
CUBDJ	$4.90	$N/A	0	N/A%	CUB 50’s Apr 2008 Calls. Sell in early January.

Normally, I would have replaced ISRG calls with new ISRG calls, but gadzooks the 350 April 2008 calls are expensive, more than I want to spend on an option, so I elected to replace it with the cheaper CUB calls.

What’s the overall performance here mid-month? Nothing to complain about –

Last 4 weeks: 3.0%
Last 3 months: 5.7%
Last 12 months: +8.3%
Year to date: +8.2% (Dow is +9.6% ytd from 12,463)

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Michael

Follower of Jesus, conservative, freedom-loving patriot.

About Me

Michael, a sinner saved by grace, sharing what the good Lord has shared with me.

Solomon, in the book of Ecclesiastes, said, “I have seen all the things that are done under the sun; all of them are meaningless, a chasing after the wind.”

If you’re not living for the glory of God, then what you’re doing is meaningless, no matter what it is. Living for God gives life meaning, and enjoying a “chasing after the wind” is a gift from God. I’m doing what I can to enjoy this gift daily.

Got questions? I’m not surprised. If you have any questions about Chasing the Wind, you can email me at chasingthewind@outlook.com.

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