July 2021 Performance
Once again, my portfolio underperformed the overall market in July. It’s been a bit challenging as I continue to maintain a decent cash position. This is in contrast to my early investing years in which I was margined to the max. One thing I would say is that you can definitely sleep better at night with a cash position versus a high margin balance.
The only change to my portfolio was the closing out the
short Put (expired out of the money) position in Kindred Biosciences. I was short
the July $7.5 Puts. I try to find options that expire prior to the HSR announcement
with the merger arb plays. The premium may be small, but it gives me greater
conviction in going big.
I continue selling way out of the money Puts on the
large tech names to generate some weekly income. Statistically, there is a very high
probability that these options will expire out of the money. I always do worry
about a black swan moment in which a big decline in a particular stock can
literally wipe you out. As the saying goes, it’s like picking up pennies in
front of a steam roller.
That is all to report for July.
2021 Performance = +7.87% with the running monthly returns as
follows:
January
-2.1%
February
+0.6%
March
+0.99%
April
+5.77%
May
-3.56%
June
+4.0%
July +2.23%
posted by Money Turtle @ 8:38 PM
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