Jack - I just completed my review of the last 10 months of my buy-write
trading. Results are:
I made 49 buy-writes in 32 different stocks.
34 closed at a profit
3 closed at a loss
12 are still open
The average annualized profit on the 37 closed positions is 34%
The average annualized profit on this portfolio in 23% (I was not always
More then 70% of my trades were per your recommendations. The others were
generally out-of-the-money buy/writes.
thanks for your help,
Will Ingoglia 2/19/2008
Many thanks for your reply.
Yes, indeed you 'work for me' : in your first incarnation (many years ago)
you made me about $15,000. Since I rejoined you (forget when that was) I've
invested most of my savings on your advice and you've made me, over $150,000 --
Sorry I misjudged you on OIA, I should have known better.
Thanks for attachments. When I've had a chance to study them I think I'll
probably give OIA a try.
Thanks for all your help -- may you live for ever (or at least outlive me.)
Richard (Last name withheld by request) June 28, 2007
[Note: the "first incarnation" referred to here is Jack's former
paper-based newsletter "Inside Track" which is no longer published.
OIA refers to Jack's covered call newsletter Option Income Advisor.]
After reading your letter this week I felt a need to thank you for all the
wonderful advice I've gotten from you for the past few years. Many, many
winners, a good balanced portfolio. Though weighted to sectors, certainly, most
would argue that's really the only way to make money, unless you abandon to
Both my parents passed away within the same seven months this past year.
Tough to lose both so quickly. But my mom, Elsa who died this past July, would
always ask in her heavy German accent, "Vat did ADAH-mo say today?"
Even when she was at her sickest, she loved to talk about the market, and kept
up with her investments.
For the last few years I made her trades for her, but we talked market all
the time. We spent many fun hours at our computers, (she lived in Philly), and
on the phone, talking about your recommendations. My mom was a brilliant lady, a
Ph.D., and was interested in everyone and everything. She used to love to hear
your letters just to hear them. LOVED that you were an accountant and delved
into the options thing.
She was angry at me that I refused to ask you about Genentech for her; she
had made a lot of money on it herself, and wanted to know if she should sell or
hold. I tried to explain to her that you covered the stocks you placed in our
portfolios only; that you're not in the business of running "lightning
rounds" about any issue that came to mind. But because of your track record
and honest devotion, she wanted your say on it nonetheless. You had her great
respect indirectly through me. And even though she didn't know you at all, she
liked you because she knew you made her son lots of money.
I bought Harvest and PWE this past week, and don't mind the dip at all. Some
of our biggest winners dipped before they took off.
Chesapeake was down 20% after I bought it back then, and look at me now!
Keep up the GREAT work. Atta boy, Jack.
Jerry Kissel - Nov. 12, 2006
I am sitting here reviewing my taxes and trying to
figure out where all this income came from. I want to thank you for part
of that. I started with you about 2 years ago and did not totally
understand what we were doing. However, we have been very successful in
those two years, both financially on all the deals that you suggested that we
do; and also, I now understand what is going on.
I appreciate your keeping us out of the market last
summer when things were not good, and I appreciate your insights in the market
to know what sectors to hit with the covered calls and when to hit these
Thanks again, and keep up the good work so I can
pay more taxes next year.
Joe Key Dallas, TX 4/06/2006
I personally have used your past OPTION recommendation with AU, and I plan to act on SUNW Monday if the price make sense. I find your explanations very well written and clear, one major difference between your investment letters and others that I have tried before is that yours are very educational. NOT ONLY AM I GETTING INVESTMENT ADVICE, BUT I AM BEING TAUGHT HOW TO BE AN INVESTOR. Selling the call in AU was my first experience with OPTIONS outside reading a few books. Your letter gave me the confidence to actually make the trade and in doing so I was excited that I finally understood "selling calls".
Please keep the OPTION info coming,
"This last letter received today via email is the most cogent, informative letter I've ever seen from an investment advisor. Congratulations for telling it like it is."
Your last newletter was great! But then, most of them are. I have to put my two cents in, in response to the first few paragraphs.
I signed up for your newsletter for one reason, your knowledge and insight into stocks. That's it! I value your comments a whole heck of a lot more than Rukyeser or any of the other guys hawking stocks. How many years can people keep believing these guys? My subscription is coming up for renewal in the next few months. I was worried about getting a renewal notice. The last thing I wanted was for my subscription to lapse...
I'm interested in hearing more about writing calls. I've written a few. AU being one of them. I foolishly wrote some December 30 calls and by mid December was praying that they didn't get called. Oh well, if the worst I can say is "I didn't make as much money as I could have due to my own mistake" then I guess it's been a pretty good year. I'll be very interested in getting your advice on AU. Should I buy more at the current price and write calls or wait for a pullback? I'll probably wait for pullback but . . . Hopefully you'll address that in a newsletter sometime this month.
Thank You and keep up the good work.
I commend you on your comment "I will not allow pride to stand in the way of "GOOD RISK MANAGEMENT". It offers a great deal of comfort and confidence to hear investment advisors use that term. So many forget risk management. I thank you for not following the crowds.
Just a quick comment.
I am an avid fan of yours way back since the Inside Track days. Generally I follow your recommendations and I do trade options (have traded them for a long time) thank you for a good newsletter.
just wanted to comment on the nov 17 letter, the paragraph starting "You may wonder why I periodically go through so much trouble to debunk stocks I'm not recommending......"
i have to say your commentary is not wasted at all!!! i enjoy that information every bit as much as the actual stock picks... you just cant get that kind of candid analysis anywhere else. keep up the good work and keep us informed on all the baloney out there...
Jack, this last letter received today via email is the most cogent, informative letter I've ever seen from an investment advisor. Congratulations for telling it like it is.
William A. Bloomer
"Your honesty and integrity far exceed anything I've
ever been accustomed to on Wall Street."
Although the dust has probably not quite settled on the upheaval in the stock market, my recent experience has caused me to reflect on my relationship with you over time, formerly via Inside Track and lately, through Insiders PLUS.
Upon analysis of my portfolio performance, it became clear that any losses I’ve suffered over the last few years were in direct proportion to the extent to which I strayed from your advice. Subsequently, swearing to follow a course truer to your recommendations, the ship was righted, and I enjoyed the prosperity that followed.
At this time I would classify myself as a true and loyal convert. Holding degrees in architecture and landscape architecture from Rutgers, Harvard, and Drexel Universities, it is tempting to think one is capable of managing one’s own money. Experience has taught me, however, that there is no substitute for the financial expertise, time and dedication you bring to the table. From now on, I’m going to dedicate my energies to the firm that bears my name, and let you take the financial worries off my hands. I look forward to each of your newsletters.
Very truly yours,
Charles J. Frederick, Jr., RA, AIA, CLA, ASLA, AICP, APA
Principal, Cee Jay Frederick Associates, Architects
I was impressed to get your voicemail at my home! I renewed my membership yesterday from my office computer versus trying it from my home computer. Maybe that was the problem?? Keep up the good work and thanks again for the personal attention!
Your financial news letters are great, timely, honest and straight forward, thanks for your insight and help in that financial jungle out there!
Thanks for the update on remaining Inside Track stocks. If you could keep
an eye on Devon and Equity Office Properties from time to time, that would be
great. Your faithfulness to the Inside Track subscribers is a testimony to your
character, always an important commodity in any endeavor. We also like your
Insiders Plus newsletter.
Thanks for everything.
"As for me, I think I'll stick by Jack."
I really enjoy your subscription. Your honesty and integrity far exceed anything I've ever been accustomed to on Wall Street. You really have called this market correctly. Keep up the great work.
Kindest Regards and Thanks,
Just a quick comment and no need to reply. I think your emphasis on the real circumstances surrounding a stock is very welcome amidst all the hype from the sell side brokers etc.
Having been in business for over 30 years--running companies all over the world-I know only too well the games that can be played with financial statements. At the end of the day, cash flow tells the real story!
I heard an A.G. Edwards representative on the radio this afternoon trying to rally investor's confidence. In so doing, he said 'those who were lucky enough to be out of the market, should start buying the stocks of good companies'. I assume he meant that those who were lucky enough to have not listened to his advice of the past two years, should now trust him. As for me, I think I'll stick by Jack.
Everett Souza, Jr.
Just a comment to let Jack know how much I appreciate his advice. I am the President of a mid-size engineering company in Automotiveland (Michigan). I invest a good deal of money and have paid top dollar for the best advice money can buy. My subscription to Insiders Plus is better advice than I have ever received from expensive "experts". I like the conservative, yet aggressively "ahead of the street" approach Jack has. I also admire the great attention to the customer you have. It is an approach I discuss with my management staff often. Thanks for this invaluable service. If you ever get to Michigan please allow me to buy you dinner.
I'd like to offer my compliments and thanks: I feel you're both honest and concerned - and also pretty good at selecting (on the whole, that is - we'll forget Conseco and Boston Chicken . . . ). In my experience these three virtues are rare indeed in your profession. Of the thirteen advisors I've tried, … 9 have lost me money (some significant money) and 4 (including you) have made me money. Of the winners you are tops by far. Thank you! I'd have done better if I'd followed your advice to the letter instead of second guessing you at times….
R.A.F. (name kept private by request)
"Thanks for this invaluable service. If you ever get to Michigan
please allow me to buy you dinner."
thanks for the response jack ---- i always liked your ideas, your presentation of the facts as you saw them, telling us when to sell as well as when to buy, and most of all, i liked the way you would take responsibility for those times when you were wrong on a company. i had great results with ivax, rational software, a couple of others that i don't remember, and the only one that didn't work out for me was commscope.
but i remember the time or two when you would miss one and then just say you were wrong, apologized, and we moved on. to me, it shows a lot more character to be able to admit mistakes rather than just harp on the wins (like many of your competitors do!!) -- it shows me that you are a lot more secure in your practice and methodology than many of your peers.
make no mistake, i'm here to make money --- but i'd rather take my chances w/ somebody i feel l can trust, right OR wrong, than w/ people who always say how great they are and always seem to find ways to sweep the losers under the rug.
good to be back, jack . . . . have a great week, and let's make some money ---
Michael I. Brunner, Houston, Texas
Subject: Re: Jack Adamo subcription
I was having a beer with an old buddy a few weeks back that I hadn’t seen in a while. Out of the blue he said whatever became of that "insider trading guy - that Jack…"
Well we started laughing and then started shaking our heads as we reeled off a few of your previous stocks. It was "do you remember Ivax", "what about Fairfield", "Commscope was beautiful wasn’t it", etc. You would have thought we were talking about women.
Jack I know there were a few that didn’t pan out, but there weren’t many. I use to always equate you as a ‘good contact hitter’ (I mean that as a compliment). Your letters were always a good solid read where you weren’t always swinging for the fence (the old pigs get slaughtered stuff). But in the end I do remember many home runs. I also always remember and appreciate the fact that you were not shy to call a spade a spade.
There is that adage ‘people don’t care how much you know till they know how much you care’. It is so difficult to get that across in an email or a letter, but in the end over time I always came away with that feeling toward your advice. You showed a genuine concern for those on the other end with a refreshing absence of condescension, ego and arrogance.
Later on in the night we put your newsletter in the category of things that worked so well we stopped using it.
At any rate you popped into my brain this morning on the drive into my office. I am swamped today, but I have read your last four letters and have printed off a bunch to read this weekend, especially on AU. NLY, DVN. It is the same mantra in my mind after recalling your letters from previous years. Looking at these individual issues quickly I say to myself, "I see Jack working here, yeah another Jack stock, on the surface I see what he likes here, etc."
Your analytical background lends itself well to your advice. Your logic is straightforward and often compelling. We both know that the market has its own mind so compelling logic and good fundamentals do not always translate into appreciation, but more times than not it helps on the downside.
So back to work for both of us and I am glad to re-connect. I promise not to be one of those knuckleheads that are always writing emails. Looking forward to the next 24 months, stay warm (I chuckled over the global warming/aerosol can intro) and have a great weekend.