Another month in the bag.

music selection:  “Absolution” — The Pretty Reckless

weigh-in:  212.4 +1.4 – doh!

 

ASSETS:

Wells Fargo (taxable): 28,697 – up 310 from 28,387.  Yield on account 10.98%

Interactive Brokers (taxable): 258,232 – up 5,288 from 252,944.  Yield on account 9.00%

Interactive Brokers (tIRA): 130,754 – up 3,425 from 127,329.  A 2.69% return on the month.

Checking: Cash on hand is up to 10,777.  It will draw down next month as I just authorized 1,100 to be paid for my home insurance.

Total Liquid Networth: This is up 10,839 from 417,621 to 428,460.  Increase for the month was 2.60%.

 

LIABILITIES:

House: Paid

Car: Paid

Taxes: I currently have an additional unfunded tax liability of about 1,500.  I will be tax loss harvesting this year to reduce that to zero and hopefully qualify for an Obamacare subsidy.

 

WITHDRAWAL RATE:

Projected twelve month withdrawals are unchanged at 24,863.  Against a networth of 428,460, that is a withdrawal rate of 5.8%.  Offsetting the 25k withdrawal is 26,390 in projected twelve month interest, dividends, and distributions.  That is 106.14% of the budget.  In addition, there were 2,249 in month options premiums earned.

 

SPENDING:

Spending is up this month to 1,857.  It’s under budget but not by much.  For the rest of the year, I have some big expenses of 1,100 in home insurance to pay plus about 2,500 in real estate taxes coming due.  I’ll struggle to stay on target but I’m well ahead of pace and have some room to give.

 

Devour your prey raptors!

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Financial Transparency 30SEP2016

Never miss another opportunity to devour prey!

9 thoughts on “Financial Transparency 30SEP2016

  • October 4, 2016 at 5:42 am
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    2249 in options premium. nice!
    hope to get there soon too 🙂

    i love this kind of posts 🙂
    keep it up

    best regards
    Chri

    Reply
  • October 6, 2016 at 9:18 am
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    Congrats on the very informative blog, its an amazing resource of investor intelligence and I really appreciate your openness on your trades and thoughts. A rare gem in the mire of get rich quick investor/trading blog dreck.

    Wondering about your UXVY puts:
    1) How does IB handle the reverse splits? Do you end up with higher spreads on the new options after the restructure?
    2) What are your thoughts on averaging down into your position? e.g. I see you own sep2018 4-strike puts bought at $2.05, last trading $1.30. Has your thesis changed? Why not buy more to improve your position and add more probability for an early exit?
    3) Why do you think market makers don’t increase the premium on these options to remove the easy money everyone claims to be making? Why isn’t the market for puts efficient? In my experience this is usually due to risks I haven’t considered. Interested in your thoughts.

    Cheers.

    Reply
    • October 6, 2016 at 8:24 pm
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      Thanks for reading!
      1) The reverse splits haven’t been a problem for me. You still hold an option with the old ticker plus a number after it such as UVXY1. It trades as normal but now represents a modified strike and modified number of underlying shares. Spreads seem normal.
      2) I don’t average down because I have a limit on how much I’ll allocate to a position on a cost basis. I’d be over allocated if I topped up. I’m afraid the Open Positions tab is out of date. I sold the 4 strike on 15AUG2016 for 2.45. I cleared 4,920 in profit. I now hold the 13 strike purchased 15AUG2016, same expiry, for 6.95. It is up quite nicely but I’m holding until it moves closer to the money.
      3) The market makers are not playing a “long game”. They are interested only in what they can make today in risk free profits. Their position is almost always fully hedged with the underlying. They actually make a few cents a share on each trade by acting as market maker. So technically, when you buy between the bid/ask and the market maker fills your order…you got “taken” for a few pennies by a player with more speed and better information that you have. Basically the “house” *always* wins.

      Reply
      • October 7, 2016 at 3:25 am
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        Ok got it, very cool.

        Good to know IB doesn’t cause issues with the reverse splits – I have read about people selling out their positions before the split to avoid the numbered tickers.

        I had a quick search of the blog but can give us some detail on how are you entering and exiting trades? UVXY OOM puts are very thinly traded options. I assume limit orders but how do you choose your limit?

        What % of profits on UVXY do you attribute to favorable/lucky execution?

        Reply
        • October 7, 2016 at 1:30 pm
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          Its more art than science. I go between the bid/ask with a limit order and wait for the market maker.

          Reply
  • October 6, 2016 at 3:22 pm
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    You’re on a very interesting journey! Seems like risky business to me, but if you can grow that asset base it becomes less risky.

    Reply
  • October 9, 2016 at 5:44 am
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    Thanks for sharing. Very educational and I learned a lot about options from your blog as I usually stay away from options. Look forward to more in the future.

    Reply

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