As we mentioned in today's Daily Briefing, our plan is to soon sell covered calls across our Samwise Portfolios. January 17, 2025 is our target expiration which is 71 calendar days from now. That's roughly 10 trading weeks, excluding this week, and roughly 50ish trading sessions.
In most cases, ...
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Hi Sam, when considering starting a new portfolio with the expectation that we are at an intermediate term peak for QQQ and NVDA would it make sense to purchase long term hedges/puts now and then wait for a correction to buy stock or long calls?
I’ve done something like that before but a lot more short-term in nature. During a correction, I’ve put on the trades separately by purchasing a hedge as a stock was dropping and then going long second.
I’d say overall, it’s not a very wise approach because we simply don’t know when the market will sustain a correction.
That could potentially work as a strategy if the QQQ were up 30% from its lows. At that point, we have a pretty high likelihood for a correction and the overall risk to the portfolio is relatively low given that a hedge usually makes up such a tiny part of the portfolio.
So for example, if the QQQ were trading at $550 after 70-80 trading days, it could potentially be a good idea to buy the hedge and then wait to go long after the QQQ falls 10%.
It could work as a strategy. But we’re far from that point right now.
I’ve joined a few days after the launch of the last portfolio and waiting to join a new cohort. At the moment I’ve set aside an account for the Challenge all in cash, and the rest is in TQQQ and non-hedged. I indeed to sell it ahead of your next new portfolio but since it non-hedged it is not particularly safe. Could you create some sort of temporary portfolio for people in my situation?