Unloading at Big Bear

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:

    • 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:

  1. Do interest rates keep rising? When will this be too much for markets to bear? How will the FED react?
  2. Is the commodities rally a fakeout or is it just facing a significant pullback?
  3. 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?
  4. Is the significant weakness in Gold now showing up in Silver?
  5. 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.

About johnonstocks

I've been trading stocks since 2003, active on Motley Fool's discussion boards and using first Hidden Gems, then Global Gains. I no longer have the newsletters, but I keep up on the WSJ and read David Rosenberg everyday at gluskinsheff.com. Education: CFA level 2 candidate MBA-focus in Finance, Marshall, University of Southern California - expected Dec 2010. BS Mechanical Engineering, UC San Diego, June 2002
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