PhilStockWorld February Portfolio Review

$1,766,591!  

Our paried Long & Short-Term Portfolios have gained $157,564 since our January Review and that is, of course, ridiculous and reflective of this ridiculous bubble rally.  The LTP went up and the loss of the STP went down – even as we increased our hedging.  That’s because we sell a lot of premium and the premium decays regardless of the market direction.  Time is our friend using this strategy.  

Also, we have SUBSTANTIAL amounts of CASH!!! across all of our portfolios as we think this entire market is BS and will collapse at some point.  At least 2 or 3 days each week I wake up wanting to just cash out and go on vacation – only I can’t go on vacation and I’d be bored so we stay invested – but that’s a really stupid reason to risk your assets if this is money that is critical to your future.  

The S&P 500 is up almost 100% from it’s March lows and yes, that was a 35% drop from the February highs but now we’re 20% above those (3,393) and it’s simply too far, too fast so we’re being very careful with our positions and very aggressive with our hedges.  In our last STP Review, we determined we had a good $300,000 worth of protection and we only have $551,828 worth of position in our LTP – that is well-covered!  

We added new longs however in the LTP on BABA, GOLD, OIH, TOT, VLO, WPM and WU in the past 30 days as we’ve been enjoying earnings season and the bargains it brings.  We still have $1,057,650 of CASH!!! sitting on the sidelines and we’ve sold very few naked puts so we also have tons of margin to play with.  On the whole, we’d love a good crash – so we can go bargain-hunting.  I will repeat what I said back on December 16th as the strategy still holds and, after making 10% for the month, perhaps more people will pay attention:

We have 33% less

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Provided courtesy of Phil’s Stock World.