Samwise Model Portfolios
The portfolios below are separated by launch dates. Each portfolio is entirely independent and has no bearing on any other model portfolio. We launch entirely new portfolios during each market correction as an illustrative tool for new subscribers who weren't present during...
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Hey Sam,
Quick question in preparation for “the Challenge”. I would like to participate, but need I need to apply with Schwab for a higher level of clearance. Would I need the “spreads level” and access to margin? I appreciate your chapters on options and shorting, and thanks to following your portfolios have hedged positions with puts for the very first time. 🙂
Yes Sam intends to use spread options, so you will need the options level for that.
Thank you.
There’s differences among different brokers, but the terminology is all the same. The type of spreads we’ll be trading here are vertical call-spreads and put-spreads (to hedge).
The Samwise Portfolios will invest in:
(1) Calls & Puts
(2) Long Vertical Call-Spreads
(3) Long Vertical Put-Spreads
(4) Sell covered calls and covered puts
Anytime we’re dealing with puts, it’s for hedging purpose. Anytime we sell an option short, it’s for hedging purposes.
Our portfolios are all long oriented. We don’t take NET bearish positions in the market unless it’s for hedging purposes.
For example, sometimes we might buy a put to hedge against our overall long position. Or we might buy a put-spread for the same reason. And we may even sell a put short to cover a long put-position.
For example, suppose the QQQ sustains a massive correction of 15-20% and our puts skyrockets. Rather than selling our puts, we may sell further out of the money puts against our put positions. This will allow us to hold our puts (insurance) while selling premium against that insurance position.
Thanks for getting back to me. It seems like margin is also a part of the spread level of clearance which has always sounded like a bad idea. I’m waiting to hear from Schwab.
NVDA just replaced INTC in DJIA
To the moon, Alice!
Woo Hoo????????????， Sam has been talking about 160-170， it’s going to happen sooner than Santa Claus ????????????
Hahaha! Wouldn’t that be the ultimate Christmas present?
I am expecting high 140s to end the year out, but if papa Huang wants to prove me wrong I’m all for it!
I’m betting on 160 EOY if the election results are seen as good for markets. Lots of hopium, but doesn’t hurt to hope for it.
Haha. Maybe. Trying not to get too exited. It’s a small index.
okay I’ll control myself. Let’s see what next week brings: election, Fed rate decision… oh my
I’ve been following the Sam portfolio closely ，the Dec 90 2026 calls are going up sweetly. Thank you Sam????
The inclusion of a company in the Dow Jones Industrial Average (DJIA) can influence its stock price, mainly due to increased demand from index funds that replicate this index.
Let’s examine the cases of Apple and Microsoft:
Apple Inc. (AAPL)
Apple was added to the DJIA on March 19, 2015, replacing AT&T. Upon the announcement of this inclusion on March 6, 2015, Apple’s stock closed at $126.60, showing a slight increase from the previous day. However, in the days that followed, the stock experienced some volatility, reflecting mixed investor reactions. Over the long term, the inclusion in the DJIA did not have a significant and lasting impact on the stock price, which continued to fluctuate based on the company’s financial performance and market conditions.
Microsoft Corporation (MSFT)
Microsoft was included in the DJIA on November 1, 1999, replacing Goodyear. At that time, Microsoft’s stock benefited from the general enthusiasm for tech stocks, with a strong upward trend. The addition to the DJIA increased Microsoft’s visibility among institutional investors, contributing to a rise in demand for its shares. However, as with Apple, the direct impact of this inclusion on the stock price was short-term, with the long-term performance influenced more by the company’s fundamentals and trends in the tech sector.
In summary, while inclusion in the DJIA can lead to a temporary increase in stock price due to heightened investor interest, this effect is usually short-lived. The long-term performance of Apple and Microsoft shares is mainly driven by their financial results, innovations, and overall economic conditions.
But with US election and Fed we can witness a pullback like in september… Maybe go to 110-115 zone with 20% drop like 30th August to 5th september…