Be sure to check out the 2 year charts on OKTA, NET and SMAR below… impressive recoveries.
A few of the portfolio companies are sitting at or close to 2 year highs today. Quite humbling in the middle of the other indexes that are still down considerably YTD. Anxiously awaiting the earnings releases that start in a few weeks. I’m comfortable with about a 10% cash position (meaning 90% invested in stocks). I was recently asked if I use options. Yes, I have 20 years experience with a lot of different strategies, but won’t go into that on this text string as it gets pretty complex and if not done carefully can add a lot of unneeded exposure and risk for limited addl returns. I have taken advantage of the volatile markets to sell both calls and puts against the portfolio to “juice” the returns as the stocks have rebounded. I do this with options that expire weekly to both maximize the time value received and also limit my exposure to getting bounced out of a stock or having too many more shares put to me. Rinse and repeat weekly. While I do have some naked options, they are limited and seldom exceed 8% of my overall portfolio. Now is not a time to go too far out on the limb with so many COVID-19 factors unknowable, oil wars, global anxiety, supply chain shutdowns and other factors in the wind.
Stay safe and healthy. -Victor
