PhilStockWorld May Portfolio Review (Members Only!)


VMware Security Certifications Protect Against More Than Just Dr. Evil -  VMware LearningVMware Security Certifications Protect Against More Than Just Dr. Evil -  VMware Learning$2,003,668!

This is just crazy! We're up $662,852 (49.6%) from our 4/16 review because, as I noted to our Members in yesterday's Live Chat Room, we made some aggressive moves into earnings and they pretty much all paid off, notably Coinbase (COIN), which accounted for more than half of our gains for the month. Still, my comment to our Members at in the last review was:  

    • COIN – This pullback has been great for us. Last month was net -$489,975 and now -$407,825 so +$82,000! The short puts will go worthless but we’re still a bit close for comfort on the 90 short calls so let’s take 30 of them ($267,975) and roll them to 40 short June $240 calls at $74 ($296,000) because we know FOR CERTAIN that all that premium will expire worthless whether earnings are good or bad and that will substantially reduce our long-term overhang without significantly reducing our risk if COIN takes off again (we can always roll them again).  

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Those June $240 calls are now $6.65 ($26,600) so that move alone made us $241,375 (plus our profits from the rest of the semi-bearish spread)! We simply took 30 (1/3) of our short 2026 $250 calls and rolled them to calls that would expire much sooner in anticipation of some earnings disappointment (the expectations were unrealistic). The overall position was generally short and, if we were wrong – we simply would have rolled them back but being right has been very profitable.

We started out aggressively long on COIN but it was well over our target in April so we made adjustments that left us bearish into earnings and - winner, winner! That's a huge mistake traders often make - not realizing when your winning position is out of gas. We made more money on the drop than we did on the run up...

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