BNN Money Talk Portfolio Review


MoneyTalk: Phil Davis on his trade of the year - Video - BNNI will be on Money Talk at 7pm, this evening.  

We just did the show on July 13th and, usually, we’re on once per quarter but, because we only make adjustments to the portfolio on the day of the show and because last Tuesday, I wanted to cash out (at $307,376) but I couldn’t – I called BNN and asked if they could give me a spot this week to officially cash out the portfolio.  

Unfortunately, thanks to this little pullback (which we predicted last week), we’re down to $269,804 (up 169.8%) but that’s still up $75,473 (39%) in 6 weeks and, although we’re only halfway to our $500,000 goal, that goal doesn’t mature until Jan, 2024 and I’m too worried about the short-term in a portfolio we can’t adjust on the fly to let all those profits ride.

So we are going to cash out half our positions but I’ll be putting them in a new Money Talk Portfolio that starts with a fresh $100,000 so new followers can start from scratch.  

BNN Money Talk Portfolio - Aug 25 2022

    • BYD – Nice profit, cashing in.  
    • FL – Nice profit, retail concerns are mounting, cashing in.  
    • GOLD – GOLD (and gold) is a great inflation hedge and this is a well-balanced trade at net $9,862 and if GOLD is over $20 in Jan, 2024, this will be a $50,000 spread so the upside potential is $40,138 (406%).  Even now, at $16.21, this spread is $30,050 in the money.  See why we don’t want to close it?  

    • HPQ – Again, we’re concerned about the consumer so cashing in.  
    • IBM – Although it’s our Trade of the Year, it’s already up $15,250 (586%) from our $2,600 cash outlay so we’re cashing in.   
    • INTC – Not only a keeper but we’ll get more aggressive, buying back the 2024 $55 calls at 0.80 ($400) and selling 10 more of the 2024 $45 puts for $12.50 ($12,500) as that’s only net $32.50 and we’d LOVE to own INTC at that price.  At the moment, it’s a $50,000 spread at net $7,565 so there’s $42,435 (560%) upside potential.  

    • JPM – This is a new trade for us and we’re keeping it.  Currently net $7,100 on the $20,000 spread that is 100% in the money so the upside potential, if we hold $120, is $12,900 (181%).  

    • LABU – Biotech ETF has made good money and we’ll cash it in.  
    • LOGI – Another new one for us that we will keep.  This is a $30,000 spread at net $8,900 so we have $21,100 (237%) upside potential at $55.

    • MO – Cashing in.
    • PARA – It pains me to cash them in.  I really like these guys but they’re not getting traction in a tricky market.  
    • SOFI – This one is a keeper.  I think the market is very much underestimating their potential.  It’s a $20,000 spread at a net $810 credit so the upside potential is $20,810 (2,569%).

    • SPWR – This is our Stock of the Decade and the decade is young, so we’re sticking with it.  Even at $30, this is a $52,500 spread and the current net is $37,862 so the upside potential at $30 is “just” $14,638 (61%) – but we can certainly do better than that – just selling the 2024 $35 calls (now $4.50) can bring in another $15,750 (107%).  

    • WBA – Sadly, did not make the cut.

So our 6 remaining positions have $152,021 (152% of the fresh $100,000) in upside potential over the next 17 months.  That’s out of $230,000 that remained before we made the cuts but now we have plenty of CASH!!! to make new trades with as opportunities present themselves. 


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Good Morning.


Any thoughts on earnings/adjustments?

I’ll be fascinated to hear what the moneytalk host and commentators have to say about you cashing out, Phil, and asking for a special edition to do so.

ATVI I have some sold $70 puts betting their deal with MSFT goes through. There was a problem with discrimination and their CEO , but Berkshire added to his position last quarter. I got the idea from Phil, ( March this year ) and just waiting this one out. There is still decent premium in the options any they even go out to Dec 2024.

Phil / WBA – in the MTP what are you doing with this?

Phil: I have the old, pre-spinoff T options, which include WBD: 2024 20/27 and 20/30 spreads. They are pretty illiquid. I should have dealt with this earlier, but it went under the radar for me. Any suggestions at this point? Should I wiggle out of each leg separately, and then reestablish positions in the new T? Just sell the spreads as spreads for whatever I can get and reestablish?

Any suggestions would be appreciated.

Phil: Your response and analysis regarding the old T options was extremely helpful. Thank you.

PARA- so pulling the plug in this portfolio. Are you now negative on PARA across the board?

Phil / WSM – Not a bad quarter….. high end customers still looking good…. for now…

Williams-Sonoma GAAP EPS of $3.87 beats by $0.37, revenue of $2.14B beats by $110MAug. 24, 2022 4:18 PM ET
Williams-Sonoma, Inc. (WSM)

  • Williams-Sonoma press release (NYSE:WSM): Q2 GAAP EPS of $3.87 beats by $0.37.
  • Revenue of $2.14B (+9.7% Y/Y) beats by $110M.
  • Comparable brand revenue growth of 11.3%, including double-digit growth in both ecommerce and retail. 
  • Gross margin of 43.5%, 60bps below last year driven by higher shipping and freight costs, partially offset by merchandise margin expansion; occupancy rate was flat to last year
  • Non-GAAP operating margin expansion of 40bps. 
  • Outlook: “We are reiterating our fiscal year 2022 and long-term financial outlook of mid-to-high single digit annual net revenue growth, increasing revenues to $10 billion by fiscal year 2024, and operating margins relatively in-line with our fiscal year 2021 operating margin,” the company statement.