Last week was significant in my portfolio allocation, as I used the downturn in the major US indices to unload a number of my nearest date lowest strike puts – selling all of my IWM Jan 2022 puts with strikes below 170. It was also significant in that a number of covered calls expired. I was fortunate that most of my AG was effectively called for $17.50/share on Friday before plummeting on Monday. As it goes, I have a much higher unallocated cash position at the moment.
Here’s how my portfolio ended up:
- PRECIOUS METALS/COMMODITIES
- 4.5% Gold Miner Stocks, large
- 2.5% EQX (small gold miner stock)
- 5.5% SAND Calls (small gold streamer)
- 5.2% AG (silver miner I’m selling weekly covered calls on)
- 3.0% PVG (precious metals/copper miner I’m selling covered calls on)
- 3.8% CCJ (uranium miner I’m selling covered calls on)
- 45.4% TLT Calls
- 6.1% IWM Puts
- 2.7% EEM Puts
- 1.8% EXPR (Gamble on some meme stock with low $ price that occasionally gets pumped)
- 19.5% Unallocated cash
I’m not sure how to proceed with trading at the moment, as we are certainly at a critical juncture in the markets. Here are some questions I need to ponder:
- Do interest rates keep rising? When will this be too much for markets to bear? How will the FED react?
- Is the commodities rally a fakeout or is it just facing a significant pullback?
- Are the main US indices (S&P 500, Russell 2000, NASDAQ) turning bearish per the selloffs last week, or continuing higher per today’s massive rally?
- Is the significant weakness in Gold now showing up in Silver?
- Should I diversify my commodities plays a bit more broadly or watch and wait for now?
For now, I’m just excited that I had a wonderful weekend with some old friends.