|Memo to the diary: August 20, 2001 after the close:|
Dow 10,320.07 +79.29 +0.8%
Nasdaq 1,881.35 +14.34 +0.8%
S&P 500 1,171.41 +9.44 +0.8%
QCOM closed at 63.71 +2.15 or 3.49%
Based on last Friday's close, the five strategies stood as follows (including the value of the holding as of 8/17/01):
a. 100% cash : $ 110,000 value: $ 110,000
b. 100% cash/short put : $ 121,400 value: $ 121,400
see post # 6 :
c. covered strangle : 1,000 sh of qcom plus $ 57,650
value $ 119,210
see post #5:
d. buy/write : 1,800 sh of qcom plus $ 5,510
value $ 116,318
see post #11
e. buy and hold : 1,767 sh of qcom plus $ 4.25
value $ 108,781
see post #16
Did not do anything today on QCOM: it is not near the low (to sell puts) nor the high (to sell calls) of the trading range.
I will so a covered strangle again whenever the environment is favorable. This will be an actual trade. I will then compare with other strategies.
When I do the actual sell on the calls, I will also enter a similar "pseudo trade" on buy/write, and conversely, when I make a real trade of selling puts, I will do a "pseudo trade" for 100% cash/short put. The appropriate "pseudo trades" will also be performed if the actual shares are sold/bought.
Until the next real trade.