This sector rotation has been and continues to be brutal on my portfolio:
After about of month of outperforming the indices most every day, things quickly reversed last week. My underperformance over the past week was amplified by my long call positions on SHOP, NVDA, SQ, ANET and NTNX. Fortunately, most of my short put positions that were used to fund the purchases of the long call positions were previously exported worthless or closed out. I still have some short puts on SHOP, ANET and UBNT. I had previously (before the reversal) sold LGIH to buy more fast growing tech companies. I was already heavily invested in smaller fast growing tech. SHOP, NVDA, SQ, ANET, TLND, NTNX, WIX, and HUBS make up about 93% of my portfolio. My smallest 2 positions (NKTR and JUNO) would out my 10 positions. I also have about 4% in cash. Since my portfolio is so tech heavy, I really have nothing to sell to move into more of the companies that have declined so much. I understand and previously understood that my portfolio has higher volatility because a) it’s very concentrated, and b) it’s almost all tech. Other than closing my NTNX Dec2017 $35 short puts and selling 15% of my SQ position at about $39.75, I have made no adjustments and just watched my ~15% gain over the past 6 weeks evaporate in about 1 week.
So what am I doing? I’m watching and waiting for a bottom. I’d like to add to ANET and buy back the 15% of SQ shares that I sold. If the prices get low enough then I may begin adding some short put positions again.