Really wish they'd do it too, but it takes tons of work as positions and assumptions need to change over time - not to mention this strategy ISN'T meant to be the entire portfolio. They're just covering the 'core portfolio positions' of the portfolio, which generally are hedged directional bets. That's the majority of the portfolio, something like 70% to 80%, but they haven't displayed the rest of what would normally be added - which is various earnings plays, short premium plays, strangles, 'lottos,' and potentially (not required) what I'd call 'sigma-hedges' such as buying OTM calls in volatility when at extreme lows, etc. When you add those in the portfolio gets mad complicated and really should be be actively managed - like Tom does on his actual portfolio, selling in and out of futures, adjusting positions, and throwing on earnings trade almost every day or two, as that's what can easily add an extra 10-20%/year return on top of your core portfolio, depending on volatility.
@@JeffJonesJr That's generally what Tom & Tony do and did with this portfolio - personally I roll depending on my assumption and to balance the portfolio more (derisk or lever up). Any profitable positions though, they're still rolling them - with these 'core holdings' you're supposed to have quite a few on all the time - and if you're in profit you roll them anyway as long as your assumption hadn't changed.
@@olegdenissov Same here - tbh I wish Tom or Tony would create a 'model portfolio' where you could see the public positions, but I figure they just don't want the hassle of ensuring their performance is good for it while having to manage their own real accounts. I'm making similar update videos, 5-10minutes twice a week covering positions, assumptions, changes in my portfolio, and usually a trade idea or two, but ofc I'm not experienced as Tom/Tony if you're interested. Not 100% sure if I'm presenting things the best, maybe adding some tables/graphics like tastytrade does in these top dog videos would be more helpful.
I like the beta weighted delta in this and the relative low exposure to directional risk. But how would you take care of a significant vol event where vol expands - and the entire portfolio is short vol. Appreciate a reply.
Personally, in such low VIX environment, I use calendars and diagonals, which are long theta and slightly long vega. A diagonal can be long, short, or neutral on vega, depending on the relative moneyness of two legs. The risk of short vega can only be hedged or mitigated by buying options - preferably longer-dated, yet further OTM options.
How is 1 short spy put + 3 short nvda puts only 40k capital? That itself is 60k+ if assigned. Or do you calculate capital allocation in some other way? If so, how?
They calculate based on margin your broker would impose on your account also called buying power reduction (BPR). I believe they will manage the position before it will run into the assignment risk
@@adibis.vanced They're using Reg-T margin (normal, minimum 2k in your account for tastyworks) for this account which provides around 2x~ leverage in buying-power, and a significant reduction in BPR. The options level required for this is just the standard "the works" tastyworks account level, they approve basically anyone for it if you have the funds (2k), other brokers are more difficult to get approved with without history trading with them prior. No way to calculate it upfront as it depends on volatility, but usually it's around 1/8th to 1/10th the buying power cash-secured would use in a non-margin account, when using a margin account with options approvals. Portfolio margin is way more complicated - generally you have around 1.5x what reg-T offers up to 3x (rare), so for example SPY naked calls atm which usually take many thousands in BPR ( $4000-8000 in BPR, half that in cash) in a margin account only took around $1200 in cash for me to put on last week in my portfolio margin account.
I wish you'd refrain from click-bait titles. you guys have good content, but I'm not watching this video or any others if that's the direction you're moving in
@@steve99912 Misleading viewers works for clicks, but destroys the brand and causes resentment. It's tiring not knowing if the video will actually be about what you clicked for, watching for a few minutes and seeing nothing like it - then having no faith they'll deliver it later, and thus you leave. Better to just give a cold dead approach, especially in finance - here's what I'll say, if you don't like it don't click it.
@@steve99912 That's what I'd say they should do - clicks don't matter if they'll just leave after realizing the video wasn't what they expected. Better to just have viewers know what they're getting, not get annoyed, and stick around long-term.
at least review the slides once before the show. I know your staff are doing the work, but you so often can’t even explain the slides or understand if it’s correct, you are doing a disservice to your show and the audience.
@@theotherguy6155 show is live, but the slides were prepared ahead of time. Those are not off the cuff comments, but educational materials that’s supposed to be viewed for years to come.
NUGT is not meant for longer term trading. If the underlying doesn't appreciate in value quick enough then NUGT will drop in value even if GDX goes up some
@@davidgibson8165 This is priced in, but I'd still argue it's not a good play - better to long gold with rising inflation/energy prices, or use the regular underlining but double the position (if wanting 2x) as the relative cost (buying-power cost) and lower liquidity of $NUGT is not worth it at all.
@@davidgibson8165 I do not believe your bias will work out this time, silver will shock all and take gold and shares with it. The price suppression is about over. NUGT will 3X move than GDX
How about the additional short Gamma you added when "scaling up"?
Would be nice to see the management of this portfolio going forward to capture the adjustments in various market conditions.
Really wish they'd do it too, but it takes tons of work as positions and assumptions need to change over time - not to mention this strategy ISN'T meant to be the entire portfolio.
They're just covering the 'core portfolio positions' of the portfolio, which generally are hedged directional bets. That's the majority of the portfolio, something like 70% to 80%, but they haven't displayed the rest of what would normally be added - which is various earnings plays, short premium plays, strangles, 'lottos,' and potentially (not required) what I'd call 'sigma-hedges' such as buying OTM calls in volatility when at extreme lows, etc.
When you add those in the portfolio gets mad complicated and really should be be actively managed - like Tom does on his actual portfolio, selling in and out of futures, adjusting positions, and throwing on earnings trade almost every day or two, as that's what can easily add an extra 10-20%/year return on top of your core portfolio, depending on volatility.
Are they basically rolling any losing positions at 21 DTE?
@@JeffJonesJr That's generally what Tom & Tony do and did with this portfolio - personally I roll depending on my assumption and to balance the portfolio more (derisk or lever up).
Any profitable positions though, they're still rolling them - with these 'core holdings' you're supposed to have quite a few on all the time - and if you're in profit you roll them anyway as long as your assumption hadn't changed.
@@Global-livingg Understand, but I wouldn't mind just a 5 min weekly update to see how would they adjust given the current environment..
@@olegdenissov Same here - tbh I wish Tom or Tony would create a 'model portfolio' where you could see the public positions, but I figure they just don't want the hassle of ensuring their performance is good for it while having to manage their own real accounts.
I'm making similar update videos, 5-10minutes twice a week covering positions, assumptions, changes in my portfolio, and usually a trade idea or two, but ofc I'm not experienced as Tom/Tony if you're interested. Not 100% sure if I'm presenting things the best, maybe adding some tables/graphics like tastytrade does in these top dog videos would be more helpful.
I can’t find 2 of the 5 videos in this series
I like the beta weighted delta in this and the relative low exposure to directional risk. But how would you take care of a significant vol event where vol expands - and the entire portfolio is short vol. Appreciate a reply.
Personally, in such low VIX environment, I use calendars and diagonals, which are long theta and slightly long vega. A diagonal can be long, short, or neutral on vega, depending on the relative moneyness of two legs. The risk of short vega can only be hedged or mitigated by buying options - preferably longer-dated, yet further OTM options.
Fantastic content guys, loving the insight.
How is 1 short spy put + 3 short nvda puts only 40k capital? That itself is 60k+ if assigned. Or do you calculate capital allocation in some other way? If so, how?
Margin my friend
They calculate based on margin your broker would impose on your account also called buying power reduction (BPR). I believe they will manage the position before it will run into the assignment risk
@@olegdenissov I'm guessing this is related to option level 3 vs 4 trading and portfolio margin? Is there any way to calculate this upfront?
@@adibis.vanced They're using Reg-T margin (normal, minimum 2k in your account for tastyworks) for this account which provides around 2x~ leverage in buying-power, and a significant reduction in BPR.
The options level required for this is just the standard "the works" tastyworks account level, they approve basically anyone for it if you have the funds (2k), other brokers are more difficult to get approved with without history trading with them prior.
No way to calculate it upfront as it depends on volatility, but usually it's around 1/8th to 1/10th the buying power cash-secured would use in a non-margin account, when using a margin account with options approvals.
Portfolio margin is way more complicated - generally you have around 1.5x what reg-T offers up to 3x (rare), so for example SPY naked calls atm which usually take many thousands in BPR ( $4000-8000 in BPR, half that in cash) in a margin account only took around $1200 in cash for me to put on last week in my portfolio margin account.
Thanks and thanks! 🙏
Top dogs in 2016 are like puppies now 😁
I wish you'd refrain from click-bait titles. you guys have good content, but I'm not watching this video or any others if that's the direction you're moving in
Lol who cares
@@steve99912 if you want to be associated with trash, go for it
@@steve99912 Misleading viewers works for clicks, but destroys the brand and causes resentment. It's tiring not knowing if the video will actually be about what you clicked for, watching for a few minutes and seeing nothing like it - then having no faith they'll deliver it later, and thus you leave.
Better to just give a cold dead approach, especially in finance - here's what I'll say, if you don't like it don't click it.
@@Global-livingg they could care less about clicks.
@@steve99912 That's what I'd say they should do - clicks don't matter if they'll just leave after realizing the video wasn't what they expected.
Better to just have viewers know what they're getting, not get annoyed, and stick around long-term.
at least review the slides once before the show. I know your staff are doing the work, but you so often can’t even explain the slides or understand if it’s correct, you are doing a disservice to your show and the audience.
It's a live show and they stream all day. stuff isn't going to be perfect all the time.
@@theotherguy6155 show is live, but the slides were prepared ahead of time. Those are not off the cuff comments, but educational materials that’s supposed to be viewed for years to come.
Need to long NUGT $44 Jan 20023 call, as gold hit bottom
NUGT is not meant for longer term trading. If the underlying doesn't appreciate in value quick enough then NUGT will drop in value even if GDX goes up some
@@davidgibson8165 This is priced in, but I'd still argue it's not a good play - better to long gold with rising inflation/energy prices, or use the regular underlining but double the position (if wanting 2x) as the relative cost (buying-power cost) and lower liquidity of $NUGT is not worth it at all.
@@davidgibson8165 I do not believe your bias will work out this time, silver will shock all and take gold and shares with it. The price suppression is about over. NUGT will 3X move than GDX