Portfolio Moves: Watching Paint Dry

2017 has been an interesting year, so far. Many of my holdings reached and surpassed my estimate of fair value. All of which make me wonder if things are getting a tad bubbly.

My only buy in the past two months was Oaktree Financial (OAK) at ~$39.50. Even that stock has moved up nearly 15% in 6 weeks (currently ~$45).

Naturally, I’ve begun lightening my positions. Here are a few highlights:

  • trimmed AAPL position by 30% in the $120s, as the stock spiked upwards in Feb. I wrote (May) covered calls on the remaining position. At $135, AAPL is no longer as cheap as it was when it traded at ~$90+, less than an year ago.
  • sold 2/3 of IBM position at $178. My fair value estimate was $165. I wrote some calls, which got assigned. I might buy back into the position, if it drifts below fair value.
  • I’ve been writing calls on my NOV and CFX positions; currently I have March 2017, $42 and $42.50 calls on them, respectively. I believe that they are both good long terms holdings; but may be ripe for an intermediate term pull-back.
  • sold HNFSA (~$96) and SPE (~$15), respectively. I held HNFSA for over 3 years, and just grew tired, while SPE was a very small position to begin with.

As a result of all these moves, I now have 25%+ of my portfolio in cash. Calls written on many of my other long holdings (CFR, AAPL) are currently in the money. If they get assigned, I will have nearly 35% in cash, which would be some sort of a record for me.

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