PhilStockWorld August Portfolio Review – Part 2

$2,152,571! 

That is up $10,166 since our last review and, rather than pull the plug entirely we simply elmintated about half our longs, leaving us 80% in CASH!!! and we let all our hedges ride, which leaves us in a net short position as our Short-Term Portfolio (STP) has $585,435 of downside protection and we halved the need for that protection in the LTP, leaving us farily bearish for the moment.  

If we want to get less bearish now, we can either cut back on our hedges or buy more longs so, on the whole, we’ve simply made a bearish turn that leaves our paired portfolios a lot more flexible for whatever storm lies ahead.  

And we’re over 80% in CASH!!! and CASH!!! is the ultimate hedge.  We’ve been pretty cashy all year and being cashy does not stop you from making money as an options trader – since we get astounding leverage in a bull market – it just keeps you flexible and allows you to take advantage of opportunities.  

It’s easy to make money in a bull market.  Apple (AAPL) is at $146.70 and you can buy the 2023 $140 ($24)/$150 ($19.25) bull call spread for $4.75 and you will get back $10 if AAPL is simply over $150 in January of 2023 – which is very likely to happen.  That would be a gain of $5.25 of 110% in just 16 months – that should keep you well ahead of inflation, right?  So we’re not at all worried about making money if the market stays strong.  What we are worried about is having trouble getting out of positions if the market crashes and, at this particular moment – that risk outweighs the potential reward of staying in.

Earnings Portfolio Review:  $301,903 is up $4,502 since our last review and we touched nothing at the time but recently added a trade on GOLD – but that’s it.  We already have $268,921 (89%) in CASH!!!, and we have already pared this portfolio down to positions we love AND this portfolio has it’s own SQQQ hedge – so it’s in great shape.

• SBUX – This is a

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Provided courtesy of Phil’s Stock World.