March Portfolio Income Report

Credit Spread Strategy: 4.33%

What a great month for the Credit Spread strategy – very profitable. We had a good mix for March with 2 positions on either end of the market creating a very net neutral portfolio. Moreover, we did a great job before selling Call spreads right before the sell-off. Just great timing and luck really.

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:

NDX 2,520/2,525 CALL SPREAD – $20/$480 = 4.17% Return

RUT 710/705 PUT SPREAD – $25/$475 = 5.26% Return

SPX 1,180/1,175 PUT SPREAD – $25/$480 = 5.21% Return

NDX 2,475/2,480 CALL SPREAD – $20/$480 = 4.17% Return

With regard to TOTAL INCOME and RETURN, the February portfolio produced $90 of income after investing just $1,915 in margin. That means we saw a total portfolio return of 4.33% this month based on our model allocation.

Naked Puts/Calls Strategy: 0.86%

An okay month for the Naked portfolio – we didn’t get to enter as many trades as we would have liked but a gain is a gain in this business. This “missing” 4th trade slightly skewed our final performance figure. But, we still didn’t close any trades at a loss for another month running and our April portfolio is looking very well early on.

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:

DIA 126.75 CALL – $16/$1,248 = 1.29% Return

SPY 115 PUT – $14/$1,150 = 1.22% Return

IWM 87 CALL – $15/$1,230 = 1.22% Return

With regard to TOTAL INCOME and RETURN, the February portfolio produced $45 of income after investing just $3,628 in margin. That means we saw a total portfolio return of 0.86% this month based on our model portfolio.

Iron Condors Strategy: 5.21%

Good month for the Iron Condors. Again market conditions limited us to only 1 complete condor this month but we didn’t have to make and adjustments or rolling positions which is great. With such low volatility early in the expiration cycle it didn’t make sense to “force” positions into the market.

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:

SPY  119/120-139/140 Condor – $11/$190 = 5.79% Return

With regard to TOTAL INCOME and RETURN, the February portfolio produced $11 of income after investing just $190 in margin. That means we saw a total portfolio return of 5.21% this month based on our model portfolio.