Monday, September 22, 2014

Updating the Alpha-D for 09/22/14

I experienced an involuntary change in my portfolio holdings last week.  The cash-covered put position I had sold under GDX in my IRA was exercised against me when the market price declined past the strike price.  My holdings of GDX are now slightly larger than before, at a purchase price that is very low for this ETF's historical price.  This is no problem for me.  I knew the risk and I don't mind owning a little more of a cheap partial hard asset hedge against inflation.

My other option positions on FXA, FXC, and FXF expired unxercised.  I am still long those ETFs.  I have decided not to write any new covered option positions this month on any of my securities.  I may have pushed my luck enough already given the macroeconomic headwinds building against this very calm market.

I am still long a put position against FXE, as I believe the euro is doomed.  The G20 is getting increasingly concerned about Europe's potential for renewed growth.  I believe they know more than what they reveal in public.

I sit mostly in cash, awaiting something that breaks with a loud noise.  The list of other potential hard asset hedges I have considered for my own portfolio will have to wait until their prices are low enough for me to revisit them.

Nota bene:  I am seriously considering getting a lot more cryptic with these discussions of my own portfolio.  Talking about my money might be more fun for me if I take extra steps to discourage people from copying my actions.