Sunday, April 30, 2023

April 2023 Performance

April was very quiet for me as I slowed down my options activity. With rates this high, it just didn’t make sense to push it by selling short puts / calls. I’m willing to do nothing and just let the cash sit and earn 4%+. I just want to be caught up in a black swan event, which can destroy a short put / call position. My big positions are as follows: Apple ~41%, Visa ~23% and Constellation Brands ~19%.

I can’t believe that I owned a position in First Republic Bank at one point. It was many years ago and subsequently sold it for whatever reason. The only financials I will own are Visa and Mastercard as they have proven that they can survive a financial crisis. I would never have thought in a million years that First Republic Bank would get into this kind of mess.

I also have not dabbled into any risk arb plays. I was very tempted to get into Activision Blizzard based on the rumor of an imminent UK approval. The UK decision to block the deal was a big big surprise. I’m glad I didn’t play it as I would have likely gone in big and would be in a little trouble right now.

Looking to add to some dividend paying stocks…

2023 Performance = +15.72% with the running monthly returns as follows:

January +8.04%
February -1.60%
March +6.31%
April +2.39%


At May 24, 2023, Anonymous Anonymous said...

Keen to hear if you are looking at any regional banks, although you avoided one? Some potential for good buys if they are well capitalized? e.g. Citizens, M&T or going after big banks JPM benefiting from acquiring other banks. The group is being taken down. Like the Ginko play...I have sold options at this level taking the cash and investing in shares. Happy to have the options convert to shares. Prices around $1 for Ginko is like buying an option on the company.

At May 25, 2023, Blogger Money Turtle said...

I'm staying away from regionals right now. All you need is a bank run and your out of business. A bank (really a brokerage) I would consider is Charles Schwab. They are very aggressive in making sure their customers maintain their cash in low yielding cash accounts. I used to be a customer of TD Ameritrade (owned by Charles Schwab) and it was not easy to sweep your cash into a money market account. Charles Schwab makes nice money off their customers float. Fidelity on the other hand automatically sweeps your cash into their high yielding money market account.

Ginkgo is obviously a long term play. Their library of genomics data (Codebase) is under appreciated. I really like their vision.


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