Lord, what a brutal morning, huh? I’ve been trying to focus on the positive, which is (1) I was still at 35% cash (2) umm, let’s see, I don’t have cancer of the eyeballs.
I’ve made precious little changes to my portfolio, however, but I wanted to walk through those alterations. First, with a heavy heart, I got out of my EFA puts (January expiration). Candidly, I bet this chart ultimately works out fantastically, but I really needed to trim risk, so I ditched it.
I also got rid of my HUN puts, which didn’t even expire until January 2026. There were a couple of reasons for choosing this one. First, I decided it was a little silly to have something THAT far out. Second, the price has been intruding more deeply into the topping pattern than I’d like to see, so if I had to choose something to dump, it had to be this one. On top of that, it’s relatively thinly-traded.
I got rid of the above 2 and, at this point, have added in just 1, which is Conoco (COP). I believe the commodity rally is done, and I’d like to have more energy shorts, so I felt this was a good choice. It has a price gap at 112.41.
Here’s the bigger picture, illustrating the potential.
Anyway, I’ll live to fight another day, but this is one of those days (more like one of those six trading days in a row.……..) where some of us just need to grit our teeth and tough it out.
