Terry's Model Portfolio: Day 8

Last Trade: Buy 468 July 137 SPY Calls @ 0.32. 6:35 a.m. (PST), Thursday, July 7, 2011.
Rate of Return Today: 53.12%
Profit Today (Unrealized):$7,968.75
Portfolio Balance: $24,317.75
Performance Year to Date:143.17%
Objective: 100% gain by November 21, 2011
Time: 1:00 p.m. (PST), Thursday, July 7, 2011
Market Assessment: Breach of July 1, 2011 daily high has produced explosive move higher. Uptrend is strong, particularly
the MACD Histogram. Probabilities favor a higher Friday. Natural resistance lies @ 1368 on the S&P 500
Index. High and Tight Bull Flag pattern. No reason to sell calls in a rising market.

Twyman Asset Management

July 7, 2011

Dear Terry:

We have reached our goal of a 100% gain by November 21, 2011.

I am not celebrating because the trade remains open. The profit is unrealized. The July 137 SPY calls closed @ 0.49 today. As a rule, we cut our losses short. We let our profits ride. The market action since July 1, 2011 has been extremely bullish. Rather than a price target, my time target would be to close out the trade tomorrow @ noon. I will closely monitor market conditions and, should an earlier close out of the trade be warranted, I will do so.

We had a disappointing trade on July 1 but today's trade has more than made up for the difference. If we keep our losses to a bare minimum, we will have the resources to exploit opportunities like today.

Warm regards,


Wink