PMTS

Week 80

Brokers Statement
Portfolio
Transcript

Timestamps
What Happened Last Week – 00:17
What’s Happening Next Week – 1:57
Nick’s Update – 11:39

28 Responses

  3. Nick, in the portfolio, you state that the equity allocation is shown as if the options have been exercised. I get that but if the options are worth $5500 and the exercised value is $128, 795.70 where is the difference allocated to right now? Is it in USFR and STIP? Thank you for clarifying

  4. No big deal, but shouldn’t STIP be in Bonds instead of Cash and cash-like (or SHY in Cash and cash-like instead of Bonds)? It’s more or less the same duration. If anything, the average SHY duration is even lower.

  5. Hi Nick, I have a tactical question for a taxable portfolio which I run in addition to a non-taxable portfolio. In the taxable portfolio I didn’t execute a stock replacement by selling spot equities and buying calls, but instead I underwrote my spot equity positions with at the money puts ($540 exp Sept 20th). What’s the best equivalent strategy to selling 50% of our calls for a taxable portfolio? I thought of selling calls but as you noted it’s not that lucrative at current volatility. And more than anything I want to lock profits achieved above $540. Would you simply buy higher strike puts and finance with by selling $540 puts? Or any other ideas? Thanks!

    1. There really is no good solution. If selling the underlying is not an option, then nothing better than buying an ATM put, but that is not perfect.

      1. Thanks for the response. I will roll the puts to ATM then, recognizing the delta won’t cover losses on the spot fully.

        Question on when our Sept 20th options get close to expiry — what date do you expect to roll them to? How long ahead of expiry would you do that, generally?

  6. Hi Nick Would you kindly instruct a price range considered a buy vs sell for the 2s and 3s? (If not at attractive levels, what about any bond futures or other durations such as ZN?)
    Because I am much younger in age with limited savings and income, my initial focus was on equity but considering its unattractive risk-reward probability plus the need for diversification, any feedback on bond price levels would be greatly appreciated for this bond virgin:) (PS. any other durations or bond futures such as ZN..? )
    Lastly, it would be very helpful if a “cost basis/ avg price” per position could be considered for your portfolio? Could be helpful for new comers or who are dollar cost averaging with their paychecks(or perhaps dividend income, if i am the only yet retired person at 2greybeards? ^.^) Thank You!!

    1. I would leave futures on anything longer than 5s well alone. I would consider anything approaching 4.5% in 2s and 3s now on the attractive side and anything below 4.25 in 2s as very unattractive unless and until the labor market breaks.
      I am not sure what you mean by “cost basis/average price”. The exact prices at which we trade are all in the broker statements.

  7. Extra column in the current position spreadsheet for “cost basis/average price” would be a very handy addition nws the info can be pulled from the statement. Also uploading the whole week statement rather than the single day – Friday?

    1. It’s in the broker statement. The whole point of the broker statements is that you can extract any info YOU find useful. I can easily make the broker statement a weekly thing, that is no extra work.

  8. I made a comment on the 14th and quickly edited just because of a typo and now it’s been hanging there “waiting for approval”, so I’ll just repeat it, even though it’s not really very consequential.

    Shouldn’t STIP be in Bonds instead of Cash and cash-like (or SHY in Cash and cash-like instead of Bonds)? It’s more or less the same duration. If anything, the average SHY duration is even lower. Thank you.

      1. Nick, when I click on the three vertical dots next to a research report title for the PDF, all that pops up is a “Review” option. I don’t see a “download” option. Can you point me to the menu area? Thanks for the assistance.

          1. I would expect downloading would depend on which item you are selecting. Can you provide an example of which research item you want to download?
            Or are you trying to download a pdf of the Research and Resources page itself?

          2. Yes, I see what you mean. Looking for a solution. There has to be one. It was always meant to be downloadable, obviously need to add some permission. It will be done in next couple of days.

          3. Now sorted: just right click on any file, choose download and you can download it.

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