We’ve been on a tear over the last 48 hours and have seen our Netflix 5 P100s appreciate some 367%, our Broadsoft 5 C45s appreciate 90%, our Sears 5 P 70s return 162% and our Apple straddle return a hair under 40%. Besides adding 150 contracts to our UVXY position (following up on our rapid-cycling theory), we’ve decided to clean up house and sold the lot throughout the day and have shored up our cash position to over 20%. This is obviously a temporary glut but we’re going to be taking a more prudent approach to investing over the summer and I believe we might find some gems in Canada as well as places a bit further out such as Turkey. Have been influenced recently by Gary Shilling’s Age of Deleveraging (props to Prof. Gerry Ramos) and will begin a discussion on the topic shortly. As an aside, below is a snapshot of a theoretical portfolio of Turkish blue-chip (more or less) equities I set up on the 8th of November 2011. No rebalancing or trading whatsoever since–roller coaster eh? Anyway, after getting some good advice from Michael McHugh yesterday evening, going to go back and try to parse through the process that led me to choosing them (or even the Canadian Passive Alpha components) and try to define a process of some sort which will lead to a repeatable recipe.
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