A big thank you to all those who participated in poking holes into my portfolio (individual positions, risk management, sell decisions etc). It’s all highly appreciated.
Over the weekend, I had deliberated on what is to be sold, and I took some action early morning (Australia time).
Sells & punts
o Sold CLNE @ $4.34.
This one is probably not going to work out. I bought a few token Jan 2017 $3 calls as a punt.
o Sold TCS @ $19.36.
This one has been struggling and is probably not going to be the growth story it was suppose to be. TCS just reported a so so Q3. However, TCS’s Q4 is usually their biggest quarter and they make 70% of their monies in that quarter. If that quarter turns out to be good, the stock might pop given it has been beaten up thoroughly. I bought a July $17.50 call for $3.60 as a punt on the upside.
Sells & stock replacement
o Sold MTH @ $33.55.
MTH was bought for running a covered call. It’s been a good candidate for running covered call. The stock is completely beaten up and trading at a pretty cheap valuation and it can be range bound, so writing covered calls in the upper end of the range makes sense. Earnings are right around the corner. So, I replaced this with an equivalent number of 2017 calls. I bought the $25 strike for $11.50. I 'm going to wait out the earnings and then start writing calls against the leap. I think it will continue to be a good candidate for playing around with a diagonal strategy.
o Sold INVN @ $14.88. This one I really wanted to see how the next quarter is going to play out, especially following a full quarter of supply chips to Apple’s iPhone. The MEMS area is likely to be a growth area with wearables. Wearables are just starting out, so if management can really execute this can be a big winner. But I also don’t really like the CEO, he’s not got much skin in the game, and the founder CEO has been long gone. I was tempted to sell out completely but ultimately decide to keep potential upside by going for a stock replacement strategy. So, I bought the $10 2017 calls for $6.90 as a replacement. The bid/ask spreads are wide on INVN options and these are volatile as well. This might backfire but at least my capital exposure to INVN has reduced.
o GTLS & FIVE. These two I have to ponder a bit more.
I now have about 2% cash in my investment account.