How the Dog of Dogs Portfolio Made 124% Last Week:
This portfolio is based on the expectation that the volatility ETN VXX will continue its downward slope in the future. The following is an excerpt from the weekly newsletter I send to my paying subscribers: Summary of Dog of Dogs Portfolio
This $5000 portfolio is designed to take advantage of the long-term inevitable price pattern of VXX.. Because of contango, the way it is constructed, and the management fee, the stock is destined to fall over the long term. Twice in the last three years, 1 – 4 reverse splits had to be made so there would be some reasonable price to trade. We use calendar spreads at strikes below the underlying price.
As a reminder why we call this the Dog of Dogs portfolio, here is the 4-year graph of this ETN since it was formed:
The stock never really traded for $2800 as the graph suggests – adjusting for the two reverse splits made it seem that way. This surely is the worst-performing “stock” in the entire universe over the past four years.
Here are the current positions we hold in this portfolio:
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Dog Of Dogs
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Price:
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$27.55
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Portfolio Gain since 12/04/12 =
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+14.5%
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Option
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Strike
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Symbol
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Price
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Total
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Delta
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Gamma
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Theta
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-3
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Jan2-13
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P
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27
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VXX130111P27
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$0.42
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($126)
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-6
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Jan2-13
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P
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28
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VXX130111P28
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$0.97
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($579)
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-4
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Jan2-13
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P
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28.5
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VXX130111P28.5
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$1.32
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($528)
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-3
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Jan-13
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P
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28
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VXX130119P28
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$1.46
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($437)
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6
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Feb-13
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P
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28
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VXX130216P28
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$2.59
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$1,551
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6
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Feb-13
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P
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29
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VXX130216P29
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$3.23
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$1,935
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7
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Feb-13
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P
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30
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VXX130216P30
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$4.03
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$2,818
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3
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Mar-13
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P
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28
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VXX130316P28
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$3.45
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$1,035
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Cash
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$57
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-303
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-167
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$9
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Total Account Value
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$5,726
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-5.3%
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6
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Annualized ROI at today's net Theta:
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57%
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Results for the week: With VXX down $7.88 (22.2%) for the week, the portfolio gained $3,361 or 142.1%. We were patient while VXX headed higher due to fiscal cliff uncertainties, and this week our patience was rewarded as VXX fell big-time. Next week looks potentially great even if VXX does not continue to fall. A flat or lower price for VXX should result in a double-digit gain for the week.
Invest in Yourself in 2013 (at the Lowest Rate Ever)
The presents are unwrapped. The New Year is upon us. Start it out right by doing something really good for yourself, and your loved ones.
The beginning of the year is a traditional time for resolutions and goal-setting. It is a perfect time to do some serious thinking about your financial future.
I believe that the best investment you can ever make is to invest in yourself, no matter what your financial situation might be. Learning a stock option investment strategy is a low-cost way to do just that.
As our New Year's gift to you, we are offering our service at the lowest price in the history of our company. If you ever considered becoming a Terry’s Tips Insider, this would be the absolutely best time to do it. Read on…
Don’t you owe it to yourself to learn a system that carries a very low risk and could gain 36% a year as many of our portfolios have done?
So what’s the investment? I’m suggesting that you spend a small amount to get a copy of my 70-page (electronic) White Paper, and devote some serious early-2013 hours studying the material.
And now for the Special Offer – If you make this investment in yourself by midnight, January 9, 2013, this is what happens:
For a one-time fee of only $39.95, you receive the White Paper (which normally costs $79.95 by itself), which explains my two favorite option strategies in detail, 20 “Lazy Way” companies with a minimum 100% gain in 2 years, mathematically guaranteed, if the stock stays flat or goes up, plus the following services :
1) Two free months of the Terry’s Tips Stock Options Tutorial Program, (a $49.90 value). This consists of 14 individual electronic tutorials delivered one each day for two weeks, and weekly Saturday Reports which provide timely Market Reports, discussion of option strategies, updates and commentaries on 8 different actual option portfolios, and much more.
2) Emailed Trade Alerts. I will email you with any trades I make at the end of each trading day, so you can mirror them if you wish (or with our Premium Service, you will receive real-time Trade Alerts as they are made for even faster order placement or Auto-Trading with a broker). These Trade Alerts cover all 8 portfolios we conduct.
3) If you choose to continue after two free months of the Options Tutorial Program, do nothing, and you’ll be billed at our discounted rate of $19.95 per month (rather than the regular $24.95 rate).
4) Access to the Insider’s Section of Terry’s Tips, where you will find many valuable articles about option trading, and several months of recent Saturday Reports and Trade Alerts.
5) A FREE special report “How We Made 100% on Apple in 2010-11 While AAPL Rose Only 25%”. This report is a good example of how our Shoot Strategy works for individual companies that you believe are headed higher.
With this one-time offer, you will receive all of these benefits for only $39.95, less than the price of the White Paper alone. I have never made an offer better than this in the twelve years I have published Terry’s Tips. But you must order by midnight on January 9, 2013. Click here, choose “White Paper with Insider Membership”, and enter Special Code 2013 (or 2013P for Premium Service - $79.95). Investing in yourself is the most responsible New Year’s Resolution you could make for 2013. I feel confident that this offer could be the best investment you ever make in yourself.
Happy New Year! I hope 2013 is your most prosperous ever. I look forward to helping you get 2013 started right by sharing this valuable investment information with you.
Terry
P.S. If you would have any questions about this offer or Terry’s Tips, please call Seth Allen, our Senior Vice President at 800-803-4595. Or make this investment in yourself at the lowest price ever offered in our 8 years of publication – only $39.95 for our entire package - using Special Code 2013 (or 2013P for Premium Service - $79.95).
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Any questions? I would love to hear from you by email (terry@terrystips.com), or if you would like to talk to our guy Seth, give him a jingle at 800-803-4595 and either ask him your question(s) or give him your thoughts.
You can see every trade made in 8 actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
I look forward to having you on board, and to prospering with you.
Terry
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