Sunday, July 03, 2022

June 2022 Performance

I guess it could have been worse as the bear market gains momentum. I did finally exit my position in Alibaba with a small gain, which turned into a multiyear round tripper. I got greedy with Alibaba and watched some big gains evaporate. My big cap dividend payers [Apple, Visa, Mastecard and Constellation Brands] have held up relatively well. While my more speculative plays [Airbnb and Ginkgo Bioworks] have crumbled in this high interest rate environment. I don’t plan to make any major changes to my portfolio.

In terms of merger arb plays, I did enter a position in Turning Point Therapeutics via Short Puts. The position has since been closed out with a nice little gain. In this environment I’m avoiding the PE plays as financing can get dicey. My focus is merger arb plays with strategic acquirers.

I continued to generate income by selling Puts on some high volatility stocks such as Tesla. My sweet spot is ~ 30% out of the money depending on the premium. I’ve gotten margin calls even with ~ 20% out of the money strike prices due to the high implied volatility, but I was able to quickly close those out with minimal negative impact.

Some of the tech stocks have gotten to a point where I may actually start initiating a small position. Believe it or not, I am thinking about Tesla.
2022 Performance = -15.72% with the running monthly returns as follows:

January -0.68%
February -6.00%
March +4.89%
April -4.41%
May -2.90%
June -7.28%