BizKikr - Portfolio Review EOM May'18

After so many on this board have contributed with EOM and EOY portfolio summaries I decided it was worth the time to assess and comment on my own portfolio since some of my recent investing decisions have been influenced through the great commentary on this board.
First off, some history. I joined the Fool back in late 2013 starting with Options (MFO) and shortly thereafter a PRO subscription. The work done by MFO and PRO teams certainly has been great and enabled me to become better at using options and portfolio management. I did have some rough patches but learned from them as exhibited in my results:
2014: 19%
2015: 0.91% - option mistakes learned
2016: 8.86%
2017: 39.61%
YTD: 25.79%
You will find my portfolio is a combination of long held stock and options for leverage. I hold no margin balance but utilize the margin in my account to support synthetic longs (syn longs) and a few short puts.
First off, a brief note on options. Syn longs for those unfamiliar are like the name implies. They resemble being long a stock. For instance I have a AAPL 140 Jan 2019 syn long, meaning short a 140 put and long a 140 call both expiring in Jan 2019. The leverage is controlling 100 shares of Apple at a fraction of the cost but back stopping the position with the margin in my account. I currently have a margin cushion above 35% with all syn longs out-the-money (OTM) meaning the share price > strike price except for poor UAA.


Symbol	% of Port  Symbol  % of Port w/ Leverage  Symbol   % of Port w/ Leverage
AYX	9.99%	   AMZN	   29.12%	          AMZN	   32.61%
BR	5.55%	   AAPL	   13.64%	          AAPL	   17.73%
SHOP	5.19%	   SHOP	   10.39%	          SHOP	   15.58%
ANET	4.62%	   FB	   10.03%	          FB	   13.38%
SWKS	4.54%	   SQ	   5.04%	          AYX	   9.99%
AAPL	4.09%	   ANET	   4.62%	          ANET	   9.25%
AMZN	3.49%	   AMT	   2.47%	          SQ	   7.06%
MA	3.46%	   V	   2.37%	          BR	   5.55%
FB	3.34%	   ORCL	   0.85%	          AMT	   5.55%
COHR	3.15%	   PSTG	   0.38%	          V	   4.75%
SBUX	2.46%	   AYX	   0.00%	          MA	   3.46%
V	2.37%	   BR	   0.00%	          COHR	   3.15%
JNJ	2.20%	   COHR	   0.00%	          ORCL	   2.55%
SQ	2.02%	   FDS	   0.00%	          SBUX	   2.46%
OTEX	2.01%	   JNJ	   0.00%	          PSTG	   2.25%
TCEHY	1.88%	   MA	   0.00%	          JNJ	   2.20%
PSTG	1.88%	   NKTR	   0.00%	          OTEX	   2.01%
ORCL	1.70%	   OTEX	   0.00%	          TCEHY	   1.88%
FDS	1.57%	   SBUX	   0.00%	          FDS	   1.57%
NKTR	1.45%	   SHAK	   0.00%	          NKTR	   1.45%
TLND	1.04%	   SWKS	   0.00%	          TLND	   1.04%
SHAK	-1.06%	   TLND	   0.00%	          SHAK	   -1.06%
Total:	66.94%	   Total:  78.91%		  Total:   144.40%

Only syn longs, no long stock held	
NVDA	4.51%
BRK.B	3.51%
IBM	2.60%
NTNX	1.90%
WIX	1.55%
TTD	1.49%
UBNT	1.48%
XON	1.13%
UAA	0.38%
SVXY	0.24%
FAZ	-0.58%
Syn long with no stock held:	18.21%
	
Grand Total: Syn Long only	97.12%

Combined Long and Syn Long: 162.61%

Syn longs were calculated as if the true value of the shares were a percentage of the portfolio value, explaining why 97.12% of the portfolio value comes from syn longs. This is only for comparison with leverage. The short puts are backstopped by the margin in the long stock held representing 66.94% of the portfolio. To the novice this might seem aggressive as in borrowing margin to invest but through syn longs you gain leverage without maintaining a cash loan. Most syn longs expire in 2019 allowing for long term gains on the call.

The one syn long most responsible for leverage was my AMZN 990 Jan 2019 syn long. This came about in May 2017 after I had practically no short puts earning income since volatility had dried up making writing options less profitable. Lower volatility allows for better pricing of syn longs. I also have a few diagonal calls and short puts that contribute a small percentage of the portfolio.
My top ten holdings represent 121.45% of my portfolio value, so concentrated after accounting for syn long exposure.

The top ten have stocks that have been or continually get discussed here. I have been greatly influenced by this board and the theme on subscription based services and other areas that involve AI, ML, and DL.

I greatly enjoy the discussions here and wish everyone the best on Memorial Day,

Scott

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