I’m going to hedge the portfolio a little bit more by buying some puts on the SPY and the QQQ. We’ve had a heckuva rally from the February lows and I am just going to buy a few puts to provide a little more downside protection in case the markets do get ugly again.

I’m bidding for some SPY puts that expire in May with strike prices ranging from $190-$192 or so. I would probably consider buying some more puts here and there selectively in coming days if the markets rally further from here.

And remember, that if you were scared/in pain/panicking back at the lows in February when the $DJIA was at 15,550 or so…well now, while we’re up huge from those lows, is a great time to sell/trim and catch your breath. You don’t have to be all in or all out and you don’t have to nail the top. Just make sure you’re in a position that won’t be painful if the markets do reverse and turn lower and get panicky in their sell-off action once again.

Here’s a very interesting conversation I just had on Scutify this morning about the Virtual Reality Revolution.

Scuttle Conversation/Replies

CodyWillard

2h ago Virtual Reality is either one of the next great growth industries or it’s already in a bubble. I think there will be a VR Bubble and it will peak in a couple years from now. Who out there is excited about Virtual Reality? Or do you think it will turn out to be a small niche or even just a fad?

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rainbowolf1h ago I don’t like the idea of having a phone plastered up against my forehead microwaving my frontal lobe too much. @CodyWillard

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LunaticTrader1h ago @CodyWillard I think it will replace most of the current TV related entertainment sector and also play big role in education and so. Who will have a TV set in the home 5 or 10 years down the road if a VR device can offer a much richer experience in which you are not only a passive spectator, but also an active participant? Imagine that instead of typing away on Scutify we just enter a VR space where we sit around a table and chat normally?#future

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LunaticTrader1h ago @rainbowolf Agree that the current devices are still rather clumsy, but that will change. Other sectors that may get affected are tourism, and e.g. watching sports in VR is going to be like standing in the middle of the field if you want. Never mind porn. Also teleconferencing will become much more like real meeting, so possibly less travel… => I expect it to change almost everything we do.. @CodyWillard

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Spekoliunas1h ago @CodyWillard Its easy to get a VR bubble as there is not much where to invest if you want to have an exposure to virtual market. There is $FB with Oculus, $GOOGL with Cardboard, but revenue from VR will be too small (in comparison with total revenue) for a few years.$SNE with PlayStation VR looks much better option then. $VUZI is the most pure play (and much riskier) on VR. On VR hype its market cap easily can jump from 100M to 500M. In past years, we saw sth similar in 3D printing, biotechs…

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Spekoliunas1h ago @CodyWillard And there is not much left to invest after these companies in VR…mostly the companies who are supplying parts for VR glasses. That’s why I like $HIMX. Small cap, strong balance sheet and exposure to both VR/AR with 30 customers.

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CodyWillard

1h ago @Spekoliunas $NVDA is another potential play on the VR Revolution.

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LunaticTrader1h ago @Spekoliunas I don’t think it will be the device makers that will rake in the most profits (=made in China or Taiwan before you know it). => I would rather invest in the content makers. A lot of content will need to be created and recreated or adapted for VR. E.g. game makers like $EA could be among the first beneficiaries of the “VR revolution”. Also$DWA and $GOOGL (Youtube)

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Spekoliunas1h ago @CodyWillard In my opinion, there is huge market ahead for virtual reality and there is enough space for a few big players like Sony, Google, Oculus or even Apple, but augmented reality represents a far bigger market opportunity. AR glasses can be as popular as smartphones now. Besides potential to be used in our everyday life, it has a lot of potential in business too.

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Spekoliunas1h ago @LunaticTrader 100% agree, just forgot to mention. No doubt, content will play a huge role here too.

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LunaticTrader1h ago @CodyWillard What do you think as a parent? If school education becomes available through VR, with a real teacher teaching just like in the class… Then would you still drive your child to school every day, with the risk that (s)he is being abducted, abused or just catches disease in the class? We would all save time and know that our kids are safe studying from home. And one teacher could be serving 100s of pupils…

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LunaticTrader31m ago @Spekoliunas I am also thinking about people with physical disabilities. In VR they may not be limited by their physical handicap. Then where will they spend most of their active time? Easy to predict. Also aging people who are still mentally fit but no longer mobile. Look for companies that cater for those niche VR markets to become fast growers.

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Spekoliunas13m ago @LunaticTrader Healthcare system should benefit a lot from not only VR, but also from wearables and AI. Thats how I imagine this in the future – people are wearing wearable devices with far advanced sensors, the real-time data is sent to hospital database, AI gives you indications or even notifies you in advance (IBM Watson and Medtronic are doing it on diabetes now) and instead of going to the hospital, we will be able to go on Virtual reality meeting with our doctor if necessary. @CodyWillard

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