Red Lion

Sold some July $35 puts on BAM I bought as a hedge. Keeping a lot more of the $30 puts, but didn’t want to tie up so much on an in the money option wirh such a short duration.

VNO/M in my 401k.

I have Ritm and agnc preferred I bought in October, sitting on about 20% gains in each. Also recently bought VNO preferred. I think there will be good opportunities in cumulative preferred issues issued by reits. I don’t think bank preferred ever really make sense on a risk:reward basis with lack of cumulative dividends and just as likely to get wiped out as the common.

Bought more OWL bringing it up to full weighting in my basket of alt asset managers.

You can certainly buy T bills they’re just short duration sovereign bonds. Perhaps not the I bonds or other savings bonds.

Added to OWL

These are not very tax efficient for me either, if they're profitable then I get taxed on short term gains, but at least I can write off the net, so if they end up losing money I can take that as a short term loss. Overall I ended up having significant short term hedging gains last year by rolling over 30-60 day bear spreads. The taxes suck, but at least I managed not to lose money even though my portfolio wasn't positioned particularly right (e.g. concentrated perfectly timed portfolio in FFH and META ala @Parsad) This year haven't had any hedges on until the last two weeks, and I've built up a large position in ITM and OTM BAM puts and BAM and SPY bear spreads. I've been thinking about selling my BAM OTM puts ($30 puts) and rolling the whole position into ITM bear spreads on BAM.

Added to my July 21 395/390 SPY bear spread. If the SPY drops 5% by July, this will return about 400%. I've been most successful hedging with bear spreads as they often tend to be profitable even if the stock/index drops only a modest amount versus going long puts which need a bigger move in the underlying to profit.

Got a partial fill on some July SPY bear spreads at $395/390 for $1.10

Bought some BAM puts today, have limit orders out for a bunch more. Unfortunately there are no LEAPS available in this name, but I'm just going to try to roll shorter term put options here. I think this is a fairly good hedge for me because I have a large position in KKR/BX/BN/APO/ARES/OWL which trade a much lower valuation than BAM. If the bottom falls out for KKR/BX/BN/APO/ARES/OWL, I'm sure it's going to fall out for BAM as well, particularly since it trades at a higher valuation and has more CRE exposure. I've been looking to buy puts or debit put spreads on BAM. The $35 strike prices seem pretty reasonably priced, but so far my only fills have come on $30 strikes. Edit: Got fills and ended up building a significantly large position in puts. Most of the position is in the July $35 PUTS which I picked up at $2.95, but I also have a chunk of October $30 puts, and I also have a $30/$25 bear spread.

I’ll be doing the southern half of this trip later this month.

Perhaps fidelity can raise more money than BREIT but do they know what to do with it?

Sold a very new position UNP at about a 1% short term loss. Have been contemplating replacing the position with CNI. I do really like the railroads, but I feel like there are more compelling opportunities in the markets right now with less debt which seems risky in this market backdrop.

+1

mars corporation has been rolling up the industry for years. By far the #1 player. Buy a 3 musketeers and bravecto. Now petco is rolling up some vets as well, but not very full service unlike mars.

The mars corporation.

I'm trying to make moves in my portfolio to improve tax efficiency, and trying to reduce frequent trading at least on my larger positions (I frequently maneuver in and out of starter positions as I get to learn about an industry and consolidate my positions, but usually only if I can do so without a big short term gain). I like to play around with options, just to give me something to do, and I have been profitable but usually end up paying a very high tax rate on these returns. I've been thinking of ways to use LEAPS and warrants to try to improve the tax efficiency of my portfolio. I've worked out a basic hypothesis, and wanted to see if I could get some feedback. My idea would be to go long on various positions via LEAPS and warrants when the price of leverage is attractive. I use the notional exposure of the options to match my ideal position sizing. e.g. if I want $100,000 position sizing of GOOGL then I buy 10 contracts of an in the money LEAP, I keep the rest of the money that wasn't spent on options premia sitting in T-bills. It seems like there might be a few advantages to scaling into new positions this way, including risk of total loss of capital in a huge market downturn or black swan, but I'm mainly interested in the tax ramifications. So it seems to me that if one employed this approach there would really be three buckets. Bucket 1) The underlying stock appreciates significantly, you're sitting on a large unrealized gain, and you see reasonable forward prospects, you can simply exercise the options as it nears expiration or otherwise makes sense to get the dividend, and defer paying capital gains tax until eventually selling the underlying. Bucket 2) And this is where it gets dicy because I don't know the options tax rules and need to learn a lot more, it seems like you could roll over losing options and extend duration out shortly before losses went long term. This way you're always keeping fairly long duration options, even when you sell them for a loss you still probably have 6 months to expiration and you roll out to 18 months, for example. Does anyone know if this strategy is disallowed? It seems like as long as you're selling a LEAP for a short term loss and then rolling over to a much longer duration option this would be kosher, but this is a wild guess. Anyway, if you continue to roll these LEAP options, hopefully they eventually migrate back to bucket 1. Bucket 3) Cut bait. Take your short term losses, and move on in search of better opportunities. I currently have a large position in OXY warrants, GOOGL $75 LEAPs, and just initiated CI in the money LEAPs. Also have much smaller position in some illiquid CLPR call options which are deep underwater, and look likely to generate to some short term losses whether I like it or not. I'm not in any big rush, but before making any big trading moves I plan to sit down with my CPA for a primer on the above.

Bought deep ITM LEAPS on CI.

What about a debit put spread? The breakeven will be much easier to hit.

Started playing with this today and think it’s going to be very useful in my work to delegate low level tasks.

Nice timing. I was thinking of adding last couple week but I ended up buying a bank basket instead. even after the 50% move I think this could still be quite undervalued, and all the Covid delays in their business will likely lead to significantly larger returns as I understand their litigation contracts typically have a relatively generous preferred return type setup. the market is just like a whiny client with a legal case. Everything always moves too slow, but in the long run I think BUR is a really attractive business model.

It worries me that everyone is so confident that there will never be anything to worry about at Berkshire.

Sold some December puts on MAA and EQR about 5-10% out of the money. Have some open orders still as well as for AVB/ESS. Might as well pick up just a little bit of incremental yield on my cash while I try to maneuver into a good long term compounder at a good price.

Well I'm certainly going to look into this, and consider reallocating, particularly since this is in my retirement account. Combined these are about 120 basis points of my total investment portfolio, and they're stuck in the retirement account because of the high yields. I'm assuming you're thinking that volume decline > price increases going forward and these turn into melting ice cubes?

Over 90% of my net worth is in taxable accounts, meh I broke this down based on my entire net worth, and these equity positions seem tiny because I have a lot of NW sitting in closely held shares, real estate, and cash/t-bills right now. Taxable accounts Closely held corp shares - 38% Cash/Tbills - 25% House - 14.5% KKR - 2.2% APO - 2% BN - 1.8% BX - 1.8% GOOGL + GOOGL $75 December 25 CALLS - 1.7% Nintendo - 1.2% OXY/WS - 1.2% ARES - 1.2% Fairfax - 1.2% JOE - 1.1% Positions in the following are under 1% of total net worth, all around 1% of my liquid net worth which is how I base position sizing in my trading accounts OWL BRK.B UNP CLPR JNJ AMP JPM PNC AGNCP TD RITMC LSXMK PCYO TRRSF BUR PYPL RETIREMENT Accounts PM - 18% BTI - 17.5% VNO/PM - 12.4% CPT - 10% CLPR - 10% MO - 9% BX - 7.5% JPM - 6% TD - 5.5% CYDVF - 1.5% BHP - 1.2%