Top Dogs: Managing a Small Account

Small Accounts | Staying Consistent (5 of 6)

Top Dogs: Managing a Small Account

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

This segment, the fifth in a six part series on creating, maintaining and managing a portfolio in a $50K IRA account, reviews the original portfolio, the changes made, and the performance of the portfolio since it was created.

Our original portfolio was constructed using inversely correlated liquid products. This enabled us to take advantage of higher option premium. By adding options we also lowered the cost basis of our positions and reduced our directional risk.

A table of all the positions and their equivalent beta weighted deltas was displayed. By using options we have reduced our directional risk to ⅕ the risk and in doing so lowered the margin required to hold the same positions. This makes room for additional trades.

A graph of the Top Dogs portfolio versus SPY from January 19th to present was displayed. The Top Dogs portfolio had a lower variation of returns (less risk) and used less capital than just being entirely invested in SPY.

Watch this fifth segment of “Top Dogs For Smaller Accounts” with Tom Sosnoff and Tony Battista for the valuable takeaways and more information about wisely managing a smaller IRA portfolio.

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