tastytrade logo
Top Dogs: Managing a Large AccountManaging Expectations | Jan 9, 2017
Up Next
    Top Dogs: Managing a Large AccountManaging ExpectationsJan 9, 2017

    In the final part of the “Top Dogs” series, Tom & Tony discuss how to manage expectations in a large portfolio, $250k+.

    In Part 5, Tom and Tony review their entire portfolio and discuss adjustments they have made to their positions by managing winners at 50%, re-establishing new core positions and rolling tested positions. To help offset risk with their short 1,500 IWM shares, they sold covered puts and additionally got long 5 covered calls in QQQ.

    Since the start of the series, the portfolio is up roughly three percent. The portfolio showed that Undefined Risk Strategies outperformed the Defined Risk Strategies.

    The guys explain two adjustments they are planning for in the upcoming week; closing out 2 of the 5 Covered Call contracts in the QQQ, and rolling the Goldman Sachs put spread since there is less than 2 weeks to expiration.

    Tom and Tony remind viewers that although the portfolio has seen profits since the start of the series, losses can inevitably happen. For example, if a trade had a 68% probability of profit, it implied that there was a 32% probability of loss. Drawdowns do happen and they typically expect that to happen about 32% of the time over many occurrences.

    Going forward, Tom and Tony plan to sell puts against their short stock and sell calls against their long stock. They will also look for defined-risk opportunities in liquid stocks and ETFs as they take off their current positions.

    More like this

    tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com. 

    tastytrade is a trademark/servicemark owned by tastytrade.

    tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).

    tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.

    Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.

    © copyright 2013 – 2022 tastytrade. All Rights Reserved. Applicable portions of the Terms of use on tastytrade.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastytrade’s podcasts as necessary to view for personal use.