Catchup Commentary

Now that all transactions have been updated, a few observations:

• Deciding to roll options based on ANNUAL XIRR and ROI numbers was a mistake. The biggest problem was that any change in price on the stock or any rolling of the option had a magnified effect because the holding was of such a short duration.
  
  Since I am always writing the near-term options, I now believe all decisions should be based on some monthly threshold. It will make everything more an apples vs apples comparison.
  
  
• Overall, the covered calls have done well in protecting capital. B&H of all positions thus far would have given me a loss of 13.2%. With the covered calls, that has been reduced to a loss of 2.9%. Remember, this is only over 3 months. A bad 3 months.
  
  
• Most of the losses could have been avoided through better equity selection. Both DIA and WFC losses add up to more than my overall losses. I had doubts about DIA before entering it, since I had seen articles about it being a "sick" index, but I ignored them. And I was foolish enough to believe WFC could avoid the panic going on in the banking industry.