Covered Calls

[Joe Stocks]

New position for JS portfolio. I am experimenting (with real money) to try to add some market neutrality to this portfolio. I have position in DUG and SMN to offset some long positions. I have been doing this with some of the other bigger accounts I manage and it has worked fairly well aloowing me to go heavier into margin without a significant amount of additional risk - basically giving me additional leverage with limited additional risk.

Today I added SSO at 66.33, and sold the APR 66 contract for $3
I then bought TWM at 81.56 and sold the APR 82 at $4.00.

I have a little more exposure on the short side, but that's how I feel about the market. If I could have bought 100 shares a piece at the same price I would have rathered do that. BUYing UWM 47.80 (TWM's sister) would have meant buying 200 shares to get close to 100 shares of TWM and that would have left me with a bullish bias.

Anyway, this $25,000 account is now just about fully margined. I will post my first months results tomorrow. Right this moment I have $24,200 invested long, and $16,100 invested short.