PORTFOLIO

Client: Wassim Zhani. 38 years old. Has a family with one child
Mission: Gain 15% return
Looking for every opportunity to increase the value of our
portfolio
Beta: 1.6
PORTFOLIO
Initial Balance : $200,000 on Oct.4th
Investment Plan:
Long Position: $45,000
Short Position: $15,000
Bonds: $15,000
Options: call, put, spread, Collar. $80,000
Future and forward contract. $25,000
Cash: $20,000
 LONG POSITION
Position Company name Closing Closing Shares Gain/loss
Price Price
on10/04/11 on12/02/11
1 Long Alliant $37.74 $41.60 300
$5511.394
2 Long Blackrock $147.20 $169.02
135 $22964.67
3 Long China Mobile $48.29 $48.90
103 $5063.16
4 Long Eli Lilly $36.73 $37.37
136 $5087.122
5 Long Vale $21.99 $23.50
227 $5343.338
6 Long Sanofi $32.83 $34.49
153 $5252.818
7 Long Waddell reed financial $25.41 $27.14 197
$5340.417
8 Long Siemens $89.79 $99.91 222
$22254.15
9 Long H.J. Heinz Company $49.66 $52.38 100
$5273.862
10 Long Apple $372.85 $389.7 14
$5225.962
11 Long Intel corporation $21.22 $24.64 235
$5805.844
12 Long Google Inc $501.9 $620.36 40
$24720.46
13 Long caterpillar inc $72.54 $96.29 275
$26548.11
14 Long Best Buy $22.78 $27.6 219
$6057.946
15 Long ABB Ltd $16.71 $18.63 300
$5574.506
LONG POSITION
The profit from long position is $21,023
The balance in the long position is $156,023.76
Industries
Retail, Technology, Machinery,
Finance, Healthcare, Energy, Communication, consumer products

Machinery
Energy
Technology
Finance
Communication
Healthcare
consumer products
Retail
CRITERIA
P/E ratio<20
Total debt/assets<30%
Dividend yield>3.5%
Gross margin>20%
5years net income growth rate>10%
Beta is between0.5 and 2
SHORT POSITION

Position Company name Closing Closing Shares Gain/loss

Price Price
on10/04/11 on12/02/11

1 Short AMR $2.39 $0.387 2092 $4190

Corporation
2 Short Verizon $36.40 $37.85 138 $-199
Communications
3 Short SINA $72.67 $68.52 68 $285
Corporation
SHORT POSITION

Initial balance on Oct. 4th, 2011: $15,000.

The profit from short position: $4190-$199+$285=$4,276
Current balance: $19,276
Return: 28.5%
Industries: Transportation, Communication, Technology

AMR
Corporation
Verizon
Communications
SINA
Corporation
CRITERIA
EPS<2
Total debt/Assets>50%
Gross margin<30%
Beta>1.5
OPTIONS
Call: Put:
 Spread Stunle
FUTURES AND FORWARD CONTRACT

call Put
 Long positon: 12123
Short position:
Put and call
Spread and
Future aasd

Total balance asdasd

Return:
Achieve our mission,
PORTFOLIO
Bonds
Tennessee Valley Auth
Federal NATL MTG ASSN
MTN
Asian DEV BK
Total $15,000
Cash
$20,000
OPTIONS
The option Profit: $16,208
The option Balance: $ 80,000
The company invested at: Google, Apple, Yahoo, Best buy, Starbucks and
Blackrock.
Choosing retail and energy stocks.
Strategy: from the news, charts, historical prices, (google.com/finance,
MSNBC, software's), and other sources from analyses, and techniques.
Giving example: Apple
Steve Jobs death stocks going up
Buying 100 shares on Oct 11st at $375/share
Expiration Date : Dec 8th,2011
On Oct 15th, IPhone 4s released
Market price: 420/share
Making profit of $4500 total minus premium and fee of the transaction.
OPTIONS
Call Option:
Big companies higher returns
Avoid the volatility of the market
Companies : Google, Apple, Wall-mart, best buy
Example: Google
Buy 100 Shares for $540/share on Oct 1st
Premium: of $300
Expiration date: December 11, 2011
Sold on November 17th for $600/share
Profit of $6500 minus premium and fee of the transaction
OPTIONS

Put Option:
o Looking at stocks that reached high level
o Example: Waddell & Reed Finance
Buy: 50 shares at $24/share on Oct 03, 2011
Premium: $50 with expiration date of 2 months
Sell: $28/share on Oct 27,2001
Profit: $200 minus premium and transaction fee
OPTIONS

Spread Options:
The spread is the different between the prices of two or more assets. Its entered by
buying and selling equal number of options of the same class on the same underlying
security but with different strike prices or expiration date.
we bought and sold options mostly in this way,
Total Portfolio on spread options: $60.000
Company : Mostly from Apple, Google, Starbucks, best buy, and some other retail
and energy stocks
Reason for choosing them:
Big companies
The events happened in those companies
Good companies to choose on Christmas
OPTIONS

Collar Options:
A collar is an option strategy that limits the range of possible positive
or negative returns on an underlying to a specific range.
On October 1st:
Best buy stock: reached its lowest price to $22/share
Establish collar for 100 shares: write covered call of $25/share for 2$, while purchase
a put of $20/share for $2
The worst scenario: If the stock goes down more than 2 point, we sell at $20/share.
The lose is $100
The stock went up to $25/share on Oct 10.
Profit: $300 minus transaction fee
FUTURE AND FORWARD CONTRACT
Spread Option: Forward contracts are like futures
The spread is the different between the prices of in that they obligate the buyer to
two or more assets. Its entered by buying and
selling equal number of options of the same class either buy or sell, but past that
on the same underlying security but with different
strike prices or expiration sate. they're real flexible

Total Portfolio Future and Forward Contract : $43,592

Company : Mostly from Starbuck Corp., Apple Inc., Wal-Mart Stores,
Inc. PepsiCo Inc., International Business Machines Corp.
Another company : The Procter and Gamble Company,Verizon
Communication Inc., and so on.
Reason for choosing them:
- Companies which we are enjoy and like their products.
- Effect of Steve Jobs death.
OPTIONS
Spread Option Collar Options
FUTURES AND FORWARD CONTRACT

call Put
 Long positon: 12123
Short position:
Put and call
Spread and
Future aasd

Total balance asdasd

Return:
Achieve our mission,