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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Love it. Saving House Targaryen for the challenge? Hopefully we’re all chosen as riders. Amazing how NVDA bumped against 124 so quickly. Great call yesterday.
Sure. We’ll do House Targaryen for the $5k to $1M challenge lol. I decided to use code names for the portfolios as I think it’s a lot easier to reference than by date.
I’m totally impressed with your timing of making trades!!! I also bought more NVDA yesterday around $115.50 after receiving your trade alert!!! Thank you so much, all the trades I followed you are making good gains, atm, very cool!!!
Well, I should say I bought NVDA right before the alert cos I’ve been watching both QQQ and NVDA closely and pulled the trigger maybe right b4 receiving your trade alert.
Thanks Terry! Though I don’t think we’re really doing anything that special to be honest. That table we posted on Sunday that shows the pull-backs after 8-10% moves on the QQQ is doing all the heavy lifting here. One thing I learn years back is that the market is very cyclical. It follows broad trends for long periods of time and then will shift to a different trend. At some point, this whole pull-back 3-4% after 10% moves to the upside is going to end and we’ll end up in a melt-up rally or bear market or something.
So this all works now during the bull run. And while that trend is going on, we can capitalize on it. The hard part is figuring out when the market has decided to shift away from that trend.
Honestly Sam, I wish you had this blog at the beginning of 2024, I’d have made much more money on both QQQ and NVDA. However I started following you on Reddit around April right before the big tank to 750ish and learned to hold tight to my NVDA shares. This year has been good to me capital gain wise, no complaints. I’m sure you will come up with a system for tracking the bear market and make winning trades also. I look forward to participate in the 5K to 1 mil challenge. In the meantime, I’m reading through the investment pages you have published and hopefully I’ll excel in trading !!! Thank you!!!
Hey Sam, i wondered what you think the right proportion of a hedge and hedged portfolio would be? My portfolio is not huge so a hedge would definitely be more than 6% of the overall portfolio due to the minimum capital required to buy a put.
You raise a good point here. So some hedges do require a minimum capital requirement. For puts it’s the dollar cost of the put x $100. So a $1.00 put cost $100 minimum. A $3.00 put cost $300 etc. Those are minimum costs for 1 single contract.
There are a few ways to address that depending on the size of the portfolio. One is through the use of OTM put-spreads which are generally going to be cheaper than open ended puts.
We covered monthly OTM put-spreads in chapter 3 Part V I believe and leap spreads in chapter 3-IV.
But there’s also quarterly and semi-annual which can be the right place depending on the circumstances.
So suppose for example, one had a $10K portfolio, the most they can really spend is $600 on hedging strategies which boils down to selecting a contract that is no more expensive than $5.00-$6.00 per contract.
You can probably reduce that down to $2 to $3 per contract for $200 to $300 on a $5,000 portfolio by select a different strike. .
The strategy we outlined in chapter 3-IV to 3-V on LONG-TERM put-spread can be scaled all the way down to a $10,000 portfolio just as outlined in that actual chapter. That’s because we bought a $6.00 spread which would cost $600 for 1 single contract. That 1 single contract would hedge a $10,000 portfolio that is allocated to the QQQ in identical fashion to Olivia’s portfolio.
Now I could very very easily come up with $2-$3 spreads if I needed to hedge a $5k portfolio. I just didn’t do so for the hypothetical in the chapter.
In order to hedge a portfolio effectively, it’s critical to understand options throughly. You don’t have to be a pro. You just need to fully understand the mechanics.
For example, you’d need to know that the minimum amount of money required to buy a $1.00 call option is $100 because it contains 100 shares per contract. The same goes for a spread that is $1.00. It’s $100.
I think as Sam Weiss a concerned, the strategy in the Lannister portfolio is scalable down to $5-to-$10k and up to $100’s of millions. The Tyrell portfolio is scalable down to $1,000 unhedged or $5-$10k hedged and up to billions of dollars being a common stock portfolio invested in the QQQ and Nvidia.
Thanks a lot for that detailled answer! Makes sense, then I‘ll just wait and see what happens in the coming months
One suggestion: is it possible you could send the trade alert as a separate email? Currently it’s been embedded in the daily updates, so when we received it, it would went up a few points in NVDA case. Tia
So very soon we may shift to SMS trade alerts. That’s a lot cleaner until we can develop an iOS/Android app which is going to take some time to do.
Awesome!!! Text msg works better, an App will keep everything in one place. Looking forward to these cool improvements !!!
But keep the email alerts as well.
I 100% agree!