Investometer and Portfolio October Update
Invested levels didn’t change this month, but four calls sold raised cash near the short term peak. The FI Fund briefly returned to positive territory during October. It was good to pop into the green and let’s hope we see more of that soon.
While the Investometer series chart shows no change this month the second chart reflects the calls sold. 
Calls sold on AEO, MIDD, NUAN and FDX this month generated cash for the ‘larger, no external cash flow account’.
It just struck me that I might be a 101 kind of guy. I commented the other day how I use TA 101, well I mainly stick to Options 101 too. I predominately sell calls on fully valued companies increasing the number sold when the overall market hits my fundamental historical and TA targets then buy puts, enter bull spreads and buy LEAP calls when fear strikes. [Woops! That TA 101 comment is still in a draft post, so I will post about TA 101]
The growing account with regular cash flow is our SMSF account. Due to regular personal and employer contributions we’re happy maintaining a slightly lower cash balance in our SMSF. If the market goes down we’ll have new cash to add each month. If you manage your own Super, what approach do you take to cash? What does your investment strategy say? Mine has cash ranging from 0-100% with an expected average of 10%. While waiting for market opportunities cash will be invested in high yielding online accounts. Fixed term accounts may also be used.
As an aside those in accumulation phase should be rooting for a sell-off. The longer and lower prices go in the near term the better the future returns on new cash. A well known Warren is credited with that wisdom, but it probably predates him.
Fusion Investing Portfolio
The FI Fund briefly returned to positive territory during October. It was good to pop into the green and lets hope we see more of that soon.
Related posts:
Leave your response!