Saturday, May 1, 2010

Portfolio Turtle - May 2010

I've just updated my record. Portfolio stands at 10.74%, expect to be under-pressure in the coming months. Cash level is quite low 3%. May have to take some profits or cut losses to raise cash.

Just a quick comment on my BJToto-CF or BJToto-CD post. Reading a reader comment, I was under impression that my post was recommending BJToto-CD and it's okay to buy BJToto-CF. Both are not Okay!

I'm using that pair just to demostrate gearing is important not just looking at premium or number of days to expiry date. Some are even more sophisticated(I mean pro) are calculating implied volatility, delta, gamma, etc. To be honest, I don't speak Greek and I only look at this category when the value is screaming at me without a need to use any calculator!

I want to clarify to avoid any misunderstanding especially I'm seeing interests returning to call warrants are coming back and brokers issuing them like nobody business.

I've sold out all my call warrants over the last three months. So I've zero holding on call warrants now. As the corrections can drag into October-November, call warrants with expiry date sometime in February 2011 are also not safe. Those of us with buy-and-hold tendency will get the hardest hit, ruining our portfolio. Please be careful!

Love, Uncle Turtle.

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