Welcome to the FIRST income report for the new Credit Spreads Strategy! The December Credit Spreads portfolio was very profitable and what better way to kick off this strategy than with a 3.53% profit!
To re-cap this month’s income, let’s look at what we made in premium vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:
RUT 810/820 CALL SPREAD – $25/$975 = 2.56% Return
SPX 1,280/1,295 CALL SPREAD – $45/$1,455 = 3.09% Return
SPX 1,100/1,095 PUT SPREAD – $32/$465 = 6.88% Return
With regard to TOTAL INCOME and RETURN, the December portfolio produced $102 of total income after investing just $2,893 in margin. That means we saw a total portfolio return of 3.53% this month. This is a great return for any investment account! And because this strategy works great in IRA’s and 401k’s, you can definitely kick start that retirement income.
As we usually point out, our calculations assume that you enter just 1 (ONE) spread for each trading alert – i.e. a total of 3 credit spreads for the month. Those members with a higher capital base should be entering multiple contract positions each week to fill their respective portfolios.
If you want honest and straight-forward trading then please keep us in mind. Hey, you might even want to join in on all the fun by signing up for a 30 Day FREE Trial!
Leave A Reply (3 Comments )
Daniel
510 days ago
After seeing the extremely good results on the iron condor and credit spread positions shouldn't more emphasis be given to these strategies and less on the nakeds? Not only are credit spreads giving nicer results but they seem to be safer strategies in that the potential for loss is known unlike nakeds where the potential risk is unlimited.
[Reply]
Kirk - Admin Reply:
December 25th, 2010 at 3:21 PM
you could say that Daniel…we had a great month for both of the new strategies. The only "draw back" to these two strategies is that we do have to get closer to the market to capture good premiums and if there is trouble the additional requirements to adjust these positions is high. Condors are a favorite of beginning traders since they seem like a "no-brainer" when in reality they are still quite complex.
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Changis
165 days ago
Hi Kirk,
Congrats on a great December with Credit Spread Portfolio strategy, the one I am most interested in.
I have written to you several times and you have answered my questions patiently and clearly. Thanks so much especially considering the fact that I haven’t yet joined your service. When I do join I know I will be please with your guidance,service and customer support. You deserve the testimonials you have received. Thanks again.
Best,
Changis
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