The LongVol - What You Missed This Week
Here is what you missed this week to get you caught up:
Quick Notes On AST Alerts & The $100K Portfolio
Yesterday afternoon we had an open discussion in our chat room about swing-trades and structure and I am going to lay out a few thoughts for those that care to read and make money doing this.
AST alerts are designed to last, on average, 1-12 weeks, sometimes more. Now you probably ask, how can you know that is the duration of the trade/investment?
These are ideas that are non-index correlated.
What most of you are used to are momentum and “the market” which means
It’s the same silly reason this idea of “is the market bottom here” or “is there a recession” pounded into your head by media narrative.
One - it does not matter, and if it does matter, what are you going to do? Buy the bottom with your whole portfolio and hold.
No you’re not. And even if you do you’re going to sell early anyway, you know it, I know it.
So instead of playing the momentum game how about a new perspective?
A perspective of long/short, absolute return. If you don’t know what that means read this.
The capital markets are vast, you have companies that are not correlated with the S&P500 or Nasdaq or Dow - you have situations where sectors will inflect, long or short and money can be made.
But if you only look at momentum and worse, never consider how to structure an idea, you then get mediocre returns.
Some companies, like Alibaba, which is an active portfolio position, is not a technical trade. It is fundamental which was explained to subscribers.
When an idea is researched for that portfolio, it is researched.
Once that is done it is structured.
That structure that I provide is designed to do three things:
Create a LOW VOLATILITY position in the portfolio
Allow for time for that investment thesis to play out
Minimize your portfolio capital allocation
The underlying stock/company needs time to work (long or short) since we do both.
Long term investment ideas need time to work.
No, you’re not going to ball out with one single idea, that’s not the point.
The point is to drive home risk-adjusted returns in the portfolio.
The risk-adjusted return measures the profit your investment has made relative to the amount of risk the investment has represented throughout a period. If two or more investments delivered the same return over a given time, the one with the lowest risk will have a better risk-adjusted return.
So when these trades are done with DITM Options + DURATION (time value) that is the intent.
Steady, low-volatility returns.
And when I miss, you can throw it my face, but I don’t miss that often and when I do (and it will happen) the losses are capped because we’re using a fixed DITM option.
So let me do what I do and have done my entire career; analyze the markets and situations then provide you with an executable option so you can start making some money.
You can join and see samples here before you do.
The 4-week Trading & Portfolio Management Mastermind is wrapping up.
New Webinar Coming: $225,000 in 6-Weeks: Interview w/ a DeltaOne Member.
We’ll discuss a few things in this that should be beneficial to viewers.
Absolute Return Investing and how it leads to cross asset analysis
How he decided to size a position and then the structure
Enjoy your weekend.
This article is presented for informational purposes only, is an opinion, is not intended to recommend any investment, and is not an offer to sell or the solicitation of an offer to purchase an interest in any current or future investments. Any such solicitation of an offer to purchase interest will be made by a definitive private placement memorandum or other offering documents.
The LongVol is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.