I will be on Bloomberg's Money Talk this evening (7pm) – on the right is my last appearance (full show here).
We will be officially announcing our 2022 Trade of the Year and reveiwing our Money Talk Portfolio, which we only trade quarterly, live on the show – so it's a very hands off portfolio full of fairly bullet-proof positions that I trust can be left alone. At out last review, on August 31st, we were in the process of cashing out our winners like IBM (IBM), Pfizer (PFE) and Tanger Factory Outlets (SKT), as they were way ahead of plan and the overall portfolio was at $195,900 – up 95.9% in less than two years – there was no sense risking those gains.
IBM was at $133.40 that day and was our 2019 Trade of the Year and the Jan 2022 spread was already at net $16,570 out of a potential $24,000 but we started the spread with a net $8,060 credit as we had aggressively sold the $135 puts (4 of them) and I said at the time:
- IBM – This is a $24,000 spread at net $16,570 and, if we were able to trade it every day I'd let it ride as we can make another $7,430 if IBM holds $140 into January but we're worried about the market and we already have a massive gain so it's silly to take the risk – we're going to cash this one in.
As it turned out, we were right to be cautious on August 31st:
Despite cashing in IBM, PFE and SKT, we added new positions on HP (HPQ) and Boyd Gaming (BYD) with HPQ already making a solid contribution to the portfolio. We also got more aggressive on Barrick Gold (GOLD) and, in the 3 months since, the portfolio has grown to $199,959 – up $4,059 depsite us moving to $167,589 (84%) in CASH!!! and despite the…
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