11/30/2008 4:11:00 PM
The McMillan Portfolio
We were able to enter a new position in the past week. The position was a short position on 100 shares of the Lehman 20-year bond at $105.00. The shares closed the week above this price at $105.72. This is a long term position based on our opinion that the flight to fixed income investments is now overbought and that, over time, the price will come down as credit markets normalize. We intend to add to this position opportunistically in the future, depending on movements in the market. This position is likely to be held for a year or more and the cash yielded by it will help finance other investments we will want to make over time.
Our current portfolio is reflected below:
Long Term Portfolio
Inception Date 10/24/2008
Current Positions:
Date | Trade | Symbol | Qty | Price Paid | Cur Value | $ G/L | % G/L |
10/27/08 | Long | PBR | 100 | $2,000 | $2,094 | $94 | 4.7% |
10/27/08 | S-PUT | SFLQB | 10 | ($2,250) | ($2,000) | $250 | 11.1% |
10/28/08 | Long | SFL | 500 | $5,500 | $5,945 | $445 | 8.1% |
10/28/08 | S-PUT | YMOMB | 4 | ($3,400) | ($4,250) | ($850) | -25.0% |
11/10/08 | Long | BAC | 500 | $10,000 | $8,125 | ($1,875) | -18.8% |
11/10/08 | Long | BNI | 100 | $8,200 | $7,661 | ($539) | -6.6% |
11/11/08 | Long | RIO | 800 | $10,000 | $9,552 | ($448) | -4.5% |
11/13/08 | Long | LNDC | 1000 | $7,250 | $6,940 | ($310) | -4.3% |
11/19/08 | S-PUT | WBAMC | 10 | ($5,400) | ($4,600) | $800 | 14.8% |
11/26/08 | Short | TLT | 100 | ($10,500) | ($10,572) | ($72) | -0.7% |
Total G/L | $21,400 | $18,895 | ($2,505) | -11.7% |
Commissions Paid: $70.00
As of November 28, 2008
Cash Position | Reserved Cash: | Free Cash: |
$178,663.92 | $49,000.00 | $129,663.92 |
Interest Earned on Cash Balance last month: | $105.92 |
Total Portfolio Value: | $197,558.92 |
Performance YTD: | -1.22% |
There are no fixed stops to this portfolio, but we will actively monitor and manage positions. Cash balances will earn modest interest rates, depending on average daily balance in money market accounts. All transactions are assumed to cost $7 per trade. Each broker charges different amounts per trade, depending on trade frequency, size of the trade, trade type, etc. Check with your broker to determine your actual costs.
We hope you have enjoyed this edition of the McMillan portfolio. You may send comments to mark@stockbarometer.com.
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