ANET was one of my largest positions, and if you count the January 2020 call options, it was my second largest after NTNX.
Today, I sold about 30% of my shares. I put those funds into TWLO and SQ for the simple reason that I believed that TWLO and SQ would grow faster from here forward. A big part of that decision was the forward guidance that ANET gave. I could have left it alone and my portfolio would have been fine either way, I think. I was intending to sell some of my NVDA to add to TWLO but I decided to keep my NVDA (I did sell some NVDA earlier in the week to put into TWLO) and sell some ANET instead.
After the changes, here are my new allocations:
NTNX: 17.5% + Jan2020 ITM long calls (0.64 options equiv/share)
SHOP: 14.0% + Jan2020 ITM long calls (0.51 options/equiv share)
AYX: 13.0%
NVDA: 10.9% + Jan2020 ITM long calls (1.0 options equiv/share)
SQ: 9.8% + Jan2020 long calls (0.1 options equiv/share)
ANET: 8.6% + Jan2020 long calls (1.2 options equiv/share)
TWLO: 6.1% + Jan2020 long calls (0.5 options equiv/share)
PSTG: 5.3% + Jan2020 long calls (0.7 options equiv/share)
NKTR: 4.4%
Total net options value: 10.0% of total portfolio value with 7.5% of the value being time value and 2.5% of the value being in-the-money value
Here are my monthly returns compared to the S&P500. The returns are calculated on the last day of each month.
MONTH Total Month change S&P500 S&P (month change)
Jan 25.59% 25.59% 4.85% 4.85%
Feb 37.45% 9.44% 0.99% -3.69%
Mar 40.74% 2.40% -1.58% -2.54%
Apr 41.05% 0.22% -1.20% 0.38%
Note: my options positions contributed positively to my returns. As of today’s close, my portfolio is up 43.5% so it gained a little more since the end of April.
SHOP, SQ, and ANET have all reported earnings. After earnings, I added to SQ and sold some ANET as described above. I was very impressed with SQ’s earnings. I liked SHOP’s earnings but I did not add.
Next week, TWLO, AYX, NVDA and NKTR will report their results. I have high hopes for TWLO, AYX, and NVDA. We might get some clinical update news on NKTR but I’m not expecting much news until they present data at ASCO in June. In Q3 we may hear something about NKTR-181. NKTR shares have dropped a lot recently, down more than 30% from the 52-week high. I added a small amount in the low to mid 90s but haven’t added any more since.
PSTG and NTNX will report in late May.
Chris