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@Frank – I read through this article on using options based strategy with permanent portfolio and have some follow up questions:
– Your notional value exposure is higher. To manage this and over leverage – is that the reason we have GSY / cash equivalent which is around 20-40% allocation? OR you recommend 60% of total allocation to SPY, GLD, TLT allocation to manage the leverage?
– You mentioned that you add option layer only when SPY volatility is above 15 – is that VIX level? Do you use similar criteria for GLD and TLT volatility also? What’s that criteria?
– Key part of this strategy is active management of dynamic deltas. Can you please elaborate your mechanics for delta adjustment? Do you adjust when your current delta exposure is +- some % range of original delta or something else?
Frank,
Not able to access the document you posted for options based permanent portfolio strategy. Can you please share it again?
Hello Mr Horn, I have a followup question. Currently I dont see Top 4 Dow strategy not used in any Core portfolios. Is that by design? At what time/frequency the strategies and their allocations for core portfolio gets revisited?
-supal
ESRX to CI merger –
Am I missing something here? I entered ESRX around 96$ per share. I purchased 83 shares of ESRX. Currently after ESRX to CI (Cigna) merge, I got assigned 19 shares of Signa.
Is this correct? I lost almost 4600$ (more than 50%) in this conversion. Did others also got similar losses?
In the monthly strategy email it says universal investment strategy can be used with different scenarios like “There are many kinds of option trades possible. Most of them will be selling ATM or OTM SPY and TLT strangles.”
My questions:
1) Can we combine Logical Investment strategies with some option premium selling strategies? Have you performed any back test to see what kind of option selling strategies can be applied?
2) Do you suggest selling covered calls or selling ATM put options for NASDAQ100 or gold currency or UIS?
Appreciate some guidance on this.
Hello,
With recent changes in “Sleep well” strategy to use adaptive allocation and change the ETF selections, I feel like its same as Global Market Rotation strategy – Enhanced. Both are currently invested 50% stocks / 50% long term bonds. I currently invest in both these strategy to diversify and reduce the risk but with recent change I feel that diversification is no longer there.
Please let me know if I am wrong here or if I should switch to different strategy to diversify.
