# Pamela S. Hollis > Federal judicial disclosures. URL: https://www.frixlaw.com/law-library/disclosures/17323 ## Record - **Judge:** Pamela S. Hollis - **Year:** 2016 - **Report type:** Annual - **Pages:** 9 ## Text Custodian Trust #1 — Int/Div Special Free Credit Interest #009-see VIII. Amendement — Interest MCD McDonalds Corporation — Int/Div IRA#) — Int/Div Special Free Credit Interest #009-see VIII Amendment — Interest AAPL Apple Corp — Int/Div — Buy (add'l) AAPL Apple Corp — Sold (part) AAPL Apple Corp — Sold (part) AAPL Apple Corp — Sold (part) AAPL Apple Corp — Sold (part) CTL Century Telephone Corp — Int/Div — Buy (add'l) CTL Century Telephone Corp — Buy (add'l) CTL Century Telephone Corp — Sold (part) CTL Century Telephone Corp — Sold (part) CTL Century Telephone Corp — Sold (part) CTL Century Telephone Corp — Sold (part) CTL Century Telephone Corp — Buy (add'l) CTL Century Telephone Corp — Sold (part) CTL Century Telephone Corp — Buy (add'l) CTL Century Telephone Corp — Buy (add'l) CTL Century Telephone Corp — Sold (part) CTL Century Telephone Corp — Buy (add'l) HDGE Fund — None — Buy HDGE Fund — Sold AZN AstraZeneca — Int/Div — Buy AZN AstraZeneca — Sold Brokerage #1 (Individual assets listed below) — Int/Div Special Free Credit Interest £009-See VIII Amendment — Interest AAPL — Int/Div — Sold NFLX Put Options Feb 2016 $60-890 (Iron Condor) — None — Buy NFLX Put Options Feb 2016 $60-890 (Iron Condor) — Sold NFLX Call Options Feb 2016 $95-5140) Part of Iron Condor Above — None — Buy NFLX Call Options Feb 2016 $95-5140) Part of Iron Condor Above — Sold SPX Index Puts Jan and March 2016 S1815- $1865 Puts (Iron Condor) — None — Buy SPX Index Puts Jan and March 2016 S1815- $1865 Puts (Iron Condor) — Sold SPX Index Calls Jan-March 2016 $2030: $2035 (Part of Iron Condor Above) — None — Buy SPX Index Calls Jan-March 2016 $2030: $2035 (Part of Iron Condor Above) — Sold Brokerage #2 — Int/Div Special Free Credit Interest #009 See VIII Amendment — Interest ETCF Etrade USAA Flexible Premium Adjustable Life Insurance Policy — Interest Bank of America — None IRA #2 — hy Biofuels Power Corp Investment accounts only record the option transactions in companies where | did not own the underlying stock continuously. Calls on stock owned (AAPL) and CTL {Century Telephone) were sold in IRA account to hedge prices of common stock and do not add any information regarding ownership that is not already reflected in common stock. (Covered Calls) IRA Option premiums were small monthly transactions to insure maintenance of the underlying common stock price. Brokerage Account 1: This account reports advanced option trades commonly known as “Iron Condors™. Since this involves simultaneously buying and selling options, the usual buy and sell transactions are often reversed. For example, an option position is opened by selling (taking a short position) and is closed out by buying the option back. These trades attempt to generate extra income in a low interest environment. To limit risk, an Iron Condor uses four option trades in one transaction, The trades do not need the underlying stock or index fund to go up or down to profit; instead if the stock does not move much, the options expire, and the premium from the options sold is added to the brokeruge account. Most of the trades followed this pattern: T would sell 10 puts on a stock or index fund and buy 10 puts at a higher strike price. Option premium is collected for the sale of the puts and money is paid to buy the higher strike puts-which cost less to buy than the puts sold. This leg of the transaction causes the account to be credited with the difference between the premium received from selling puts and the cost to buy the higher strike puts. The higher strike puts are purchased (usually § above the puts sold) to limit risk in case there is a drastic market movement. If the underlying stock goes much higher than the strike price of the puts | sold (this obligates me to sell the stock at the strike price of the short puts) I am protected by buying puts five points higher. This is known us a spread transaction. The effect of this is if 1sell 10 puts and buy 10 puts 5 strike points higher, 1 can lose no more than $5000 in the trade. The goal is for the stock not to go above the short put price so that the options expire worthless and | keep the premium or close out the transaction for a total cost less than the option premium credited to my account. This transaction is repeated with calls expiring the same time as the puts. At expiration of these options, the underlying stock price will either be between the strike price of the put and call trades or will be in the money (moved much higher or lower) on either the put or call side of the transaction, Maximum profit occurs if the stock does not move much and its price is between the strike prices of both the put and call legs of the Iron Condor, Even if the stock moved drastically in one direction, risk is limited since | bought options five points from where 1 have to perform (spread which limits risk). If the stock moves in the money on either the put or call side, 1 still keep the premium credited to my account from both the call and put trades. Since the maximum risk due to stock movement is $5000, the maximum loss on each of these trades never exceeds $5000, minus the premium credited to my account for selling the calls and puts. 1 was never risking more than $5000, and none of these trades required margin of more than that amount, By the end of the year, all these Condor trades either expired or were closed out. Because the trades were numerous involving the S&P Index and NFLX, separating every component of the Iron Condor into columns would be highly confusing and hard to follow. So, I reported the high volume of trades by grouping the dates | started the option positions and the date they were all closed out. The reporting software is not designed to audit positions that are opened with a sell and closed with a buy. This is why | felt it necessary to explain the nature of these transactions, Given the inability to easily fit these trades into the reporting software, | stopped this trading activity in the first Quarter of 2016, REASON FOR AMENDED REPORT: On July 26, 2017, 1 received & letter from the Committee on Financial Disclosure which indicated that my report could not be closed duc to incomplete reporting of JP Morgan Municipal Money Market on lines 2, 7, 37, and 53. These “accounts” were sweep accounts that | consistenly reported the same way for over a decade. Not understanding the letter from the Committee, | called and spoke to a Committee employee who explained that if the money market is a mutual fund all transactions over $1000 needed to be reported. If a sweep account was merely a cash account as opposed to a mutual fund, the reporting was not necessary. When I opened the brokerage accounts over 20 years ago, I selected the JP Morgan Municipal Money Market as my sweep account and that is what I reported. However, it was never possible to determine from my brokerage statements or account profile exactly what type of sweep account | had or currently have, because the brokerage account just reported u code for the sweep accounts. On August 8, 2017, 1 spoke to a brokerage employee. He looked at my brokerage accounts and was also unable to indicate whether the sweep accounts were still JP Morgan Municipal Money Market or just cash sweep accounts, He investigated the situation and called me back about § hours later. He said that many years ago the brokerage placed my sweep accounts into a special category that yielded a higher interest than the JP Morgan Municpal Money Market. The actual sweep accounts that I have had for over a decade are called "Special Free Credit Interest 009"and it turns out that they are not mutual funds, but simply cash accounts backed by the FDIC, which the brokerage no longer offers. However, they kept my sweep accounts the sume and confirmed that none of my cash is transacted in mutual funds nor has it been for some time. 1 had no reason to investigate this until | received the Committee's letter this year. If more information is required, | can identify the brokerage and employee | spoke with to the Committee. --- Source: Frix Law Library, https://www.frixlaw.com/law-library/disclosures/17323. Public record. Not legal advice.