2012-02-18, 10:41 AM
good move argo.
always smart to increase margin by adding otherwise unmarginable savings or cash from inactive accounts. But. However. Provided. Save & except that investor has to know how to manage the margin properly. Which i'm pretty sure you can do. Unlike some.
2012-02-18, 01:38 PM
No secret....I hold 24 stocks and 5 ETF's. 2 of my stocks make up 30% of my equity portfolio. 16 of my stocks/ETF's make up 10% of my equity portfolio.
Originally Posted by gibor
Last edited by Eder; 2012-02-18 at 01:41 PM.
2012-02-18, 02:31 PM
Wow ! Isn't it too high allocation? Let me guess...one of those 2 is BCE ?
Originally Posted by Eder
I just checked my current AA, I have: 15% in Canadian banks plus 12% in Canadian Index ETFs (that also has a big weight for Can banks).... Don't you think it's too high allocation?
On the other hand, I don't have industrials at all and just INTC (even though a big %) for IT
2012-02-18, 07:34 PM
I am with Eder on the asset allocation part.
TSLA at 100% invested make up 1/5 of my portfolio.
2012-02-18, 08:28 PM
I think you should back your best ideas. My portfolio has almost equal weighting save for a few that are light. A few are kinda fillers that I wanted in on, but held back due to various reasons.
I have equal weightings because all my picks are my favourites. If I had a really good idea I would go really heavy, up to 30% of my total or so.
I had about 40% in IBM at one point but I chickened out and sold half so I could slap it on Visa and have some cash. So far this worked out in my favour, but I like IBM as a long hold to ground my portfolio.
2012-02-18, 08:32 PM
Yeah that's the idea. I'm not actually using any margin and paying interest, but of course the broker requires margin to be tied up for short options. Don't like to have compound interest work against me.
Originally Posted by humble_pie
2012-02-18, 09:47 PM
Again, I'm a newbie, but don't you think it's too risky especially when TSLA hit 52 weeks high?
Originally Posted by Causalien
I always read not to invest too much in 1 stock.....so my biggest holdings XIU - 5% and PM -4%
2012-02-18, 09:54 PM
" I'm not actually using any margin and paying interest, but of course the broker requires margin to be tied up for short options. Don't like to have compound interest work against me. "
this is what i call managing the margin properly. A large portion of the margin amount is actually earmarked to serve in case a wild event occurs & an option gets unexpectedly assigned. This amount may not be segregated, but one could say it's cloistered.
2012-02-18, 10:14 PM
humble, I assume you were holding some short options during the flash crash in May '10.. did anything happen? This is somewhat of a rhetorical question because I know you've said that you've never been assigned. But would like to hear your thoughts on it.
2012-02-18, 10:28 PM
nothing happened to me in the flash crash of '10. I don't even remember noticing it.
actually, i don't believe i've said i've *never* been assigned. What i've said is almost never. Perhaps 2-4 times a decade. Out of a few thousand options.
i've cranked out 2 simple formulas for anayzing early assignment risk a couple times already. Avrex copied them, i remember. I don't mind cranking em out again, because every option trader should have these formulas. They're fast n easy. They reveal what could be subject to early assignment & what, although in-the-money, is still buffered by enough premium that it won't be assigned.