Pure Income Portfolio System Guide

Transcription

1 From the Desk of Chad Shoop Pure Income Portfolio System Guide You can access the online portfolio 24 hours a day, seven days a week. For your ease of browsing the portfolio, I d like to share a few tips and tricks with you, as well as a general overview of each section of the portfolio. While going through this guide, keep in mind the portfolio is designed for your benefit. If you have any questions or suggestions for improvement feel free to reach out to us at pureincome@banyanhill.com, and we ll get back to you as soon as possible. Tips and Tricks Let s start with the tips and tricks to help you navigate the portfolio. Sorting: You can sort any column. Simply click the Company tab to sort by company, Entry Date to sort by the date we entered the trade, etc. The portfolio is always sorted by the entry date initially, and if you change it, it will still open up sorted by entry date the next time you open it. Details: To the left of each company name, you ll find a light-blue arrow. Clicking on that arrow will make the details of that trade available below the trade. You ll see any other recommended positions for that string of trades and the specifics for the option that was recommended. Below, you can see how clicking the light-blue arrow beside BP (NYSE: BP) shows the details of all our past trades with the company.

2 Width: You can adjust the width of any of the columns. Click on the gray line in between two columns and drag it either way to expand or shorten any column. This will not be saved the next time you view it, so you will need to adjust it each time. In the picture below, to adjust the width of the Company column, you would simply hover over the gray bar between the Company and Entry Date columns, then click on it and move it in the desired direction. Links: If you want to see the original alert for a recommendation, the dates are hyperlinked for easy reference. Simply click on any date that is underlined, and it will take you directly to the alert. Below, you can see that the date 08/17/2016 is underlined beside our ConAgra Foods (NYSE: CAG) puts. Simply click that date, and it will open the trade alert. Prices: The portfolio will update prices automatically when you open the portfolio. It uses the most recent prices (yesterday s closing price for option prices and a 30-minute delay for stock prices), and they are listed in the Current Price column. If you are viewing the portfolio, you ll have to refresh the page for the prices to update. The picture below shows some of our call and put options. You can assume the prices in the Current Prices column reflect the previous day s closing prices.

3 Print: You will notice the top right of the blue-shaded portfolio section has an icon that looks like a printer. If you wish to print the portfolio, simply click that icon, and it opens our entire portfolio in a new window. At that point, you re ready to print: You can right-click on your mouse, then select Print from the drop-down menu. Your other option for printing is to hold down the Ctrl (Control) key and the P key simultaneously on your keyboard, then click Print from the pop-up menu.

4 Note: If you are using a Mac, hold down the Command key and the P key simultaneously on your keyboard, then click Print from the pop-up menu. Overview Now that you know how to navigate the portfolio, let s go over what each column and section means.

5 Company is self-explanatory: It s the company related to the option. Entry Date is the date the price traded within our buy/sell range. Entry Price is our recorded entry price for each position. Current Price is the latest closing price for options, and a 30-minute delayed price for stocks. Close Price is only for positions that have been completely closed; either a combined trade (meaning it has multiple trades within it) or an outright closed position will have a price here. Profit/Loss is our return on the position. For our short put options and short call options, these are calculated on margin. The only time a short put option is not based on margin will be the rare occasion we are put the stock. The Notes section tells you any details about the trade. If it s still in the buy/sell range, a hold or closed on a certain date, you will find that information in the Notes. You will notice five to six sections within the portfolio, and I ll explain each below. Just keep in mind, our Current position sections will only be labeled if there are any open positions currently available. Otherwise, they simply won t appear. Current Short Call Options: These are options that we opened by selling to open a new call option in other words, shorting a call option. The profits and losses for our short call options are calculated based on margin requirements. Short call options aren t core to our strategy; I actually added them as a way to benefit from a stock s price falling. Current Short Put Options: These are options that we opened by selling to open a new put option in other words, shorting a put option. I track these returns based on a margin account, usually depositing about 20% of the initial capital required. This is our core strategy, and it s where most of my trade recommendations will be focused. Long Put Options, Covered Calls and Stocks: This is where you ll find the stocks we ve been put, and we manage our position from there. It includes long puts, which I use to limit losses on stocks we own, and covered calls, which are a great way to generate income from a stock we already own. This is where all the combined trades will show up. By clicking on the small arrow to the left of the company name, you ll get details about what trades have been made since we were put the stock. Past Positions Short Call Options: These are all the positions we ve closed after selling to open a call option. Since we are not put these, we simply close them out every time.

6 Past Positions Short Put Options: These are all the positions we ve closed after selling to open a put option. Even if we get put the stock, as long as we initially sold to open a put option to start the trade, these are closed and put in this category. Past Positions Stocks: In the early days of Pure Income, there would be outright stock recommendations. This is where you ll find the positions where we simply purchased stocks without using a short put option to enter. I think that covers everything you need to know about our online portfolio. If you have any questions about this system or anything else related to Pure Income, please feel free to send me an . You can reach me here: pureincome@banyanhill.com. Regards, Chad Shoop, CMT Editor, Pure Income