We have just finished the first half of 2014. It has been a good year for the market. It’s up about 6.7%. Everyone should be fairly happy. The composite portfolios conducted at Terry’s Tips have gained 16% over these months, almost 2 ½ times as much as the market rose. Our subscribers are even happier than most investors.
Our results would have been even better except for our one big losing portfolio which has lost nearly 80% because we tried something which was exactly the opposite to the basic strategy used in all the other portfolios (we essentially bought options rather than selling short-term options as our basic strategy does). In one month, we bought a 5-week straddle on Oracle because in was so cheap, and the stock did not fluctuate more than a dollar for the entire period. We lost about 80% of our investment. If we had bought a calendar spread instead (like we usually do), it would have been a big winner.
Today I would like to discuss the six-month results of a special strategy that we set up in January which was designed to make 100% in one year with very little (actually none) trades after the first ones were placed.
Six-Month Review of Our Options Strategies:
We have a portfolio we call Better Odds Than Vegas. In January, we picked . . .