Investment Fund Series A Update for 8-Oct-08

Testing out a new concept. Have been wanting to buy C (Citibank) since it has dropped to $20. But advice from personal and private banker is to wait as they believe C will continue to drop to close to or below $10.
One strategy is to buy half of the intended amount of Shares and use some of the balance money to sell PUTs. So if C price goes up and stay above the Strike Price, one gets to keep the Option money. And the C Shares bought will enjoy the price appreciation. If the price drops to below the Strike Price, one will get to buy the 2nd batch of C Shares cheaper than originally intended. The cost of the 2nd batch of Shares purchased will be the Strike Price minues the Options sold price.

Testing out this concept on the Options but wihout buying the Shares.... since volatility is high.

SELL to Open 10x on C-Oct-15-PUT at $1.80.
SELL to Open 10x on C-Nov-15-PUT at $2.68.

Fund A Status
Total net asset US$60,310. Cash position US$45,310.