If one chooses to only remember the sunny days instead of the rest, the happy days but not the sad - then one can say 2012 was not the best year for DITM, compared to the previous three. If a mistake was made, it was overinvesting in Energy and Materials stocks, which had good dividends and juicy call premiums, and the hope of "Fracking", etc., to lift stocks such as symbols PGH, PWE, VALE, CLF, and ERF.
Although most went slightly under water ( below the In-The-Money call option sold) and was held on to with normal covered call rollouts of the same price, enough (four) were sold at a loss, bringing the year down to a less-than-average return of just over 7% (still much better than MM funds, CDs, etc.).
As the end of four years of testing/investing DITM ends in May, I was asked to update results last weekend before the San Francisco Bay Area Options Group. Below is posted the 2012 results ( both opened in 2011 and in 2012, but closed out in 20120; also the "annualized" results of other time frames, totaled.
Finally, and best of all, is the result of actual trades in my small IRA from the start of DITM in May of 2009 - a microcosm of DITM with no contributions or distributions, losses, experiments - such as capturing stocks paying annual dividends with an ITM call- and the beginning learning curve.
For more information, go to: ditmcalls.blogspot.com
DITMDeep-In-The-Money Dateopened## Avg.#FromToStocksMonthsReturnLossesMay.'09Dec.'09183.7 18.33%0Oct.'09May.'10225.1 9.45%4Aug.'09Nov.'10147.5 9.84%0Oct.'09Nov.'10124.5 9.95%2Nov.'10Apr.'11142.5 13.32%0Jan.'11Oct.'11233 11.31%0May.'11Dec.'11205 9.31%2Jan.'12Nov.'12214.5 6.19%4 TOTAL10435.8 59.92%12 Avg/Yr.174 10.00%1.33
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