Trim, tranche, ebb and flow. Keep it steady as she goes using the playbook we’ve developed of scaling into and out of Revolution Investments as we get opportunities over time.
“I am buying a small first tranche of call options in GOOG, dated out into January 2016 with strike prices around $540 or higher. Will add a second tranche to this batch if GOOG were to get hit again in the near-term. I’d mentioned I’ve been thinking about scaling into some more GOOG exposure and this is the approach I’m taking as I already have some common from much lower prices still.”
And then I added more Google common stock to my portfolio a couple weeks ago when GOOG hit $490. The stock is now up $50 in a straight line since our second tranche in there:
I want to take advantage of this spike making $GOOG common and the notional value of my $GOOG call options our largest position right now to trim it back down a bit and take some of the profits off the table. In that vein, I’m selling half of my GOOG call options keeping all my GOOG common stock but making it just a bit more manageable and less risky as those call options I bought have almost doubled and each call option now represents 100 shares of a $540 stock. Discipline in following our playbook as usual, see?
