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8 Comments on “Returns to The Acquirer’s Multiple® Screeners and This Week’s Best Value Stock”
I am slowly buying stocks from the large cap screener – about ten already, tail hedging it with about 1/2 % of this portfolio value, expiring in 2 months, about 30% OTM SPY put options, rolling every month. Can you suggest what you think is the best strategy for tail hedging the large cap Aq.M. portfolio?
How far are your ETF projects? Will there be some tail hedging strategy in them?
Thanks for the excellent site, and sorry for being cheap and using the large cap only so far – hope to subscribe in the future and definitively buying your ETF when available.
Cheers
Thanks for the kind words! Not sure about the tail hedging. I like the Portfolio Armor approach, but haven’t tested it. An index hedge is a better idea than individual shorts.
ETF is progressing slowly. No news yet.
Thank you for very fast response!
“I like the Portfolio Armor approach” – I never heard of it and will have to read about it – do you suggest the https://portfolioarmor.com/ site?
” An index hedge is a better idea than individual shorts.”
You think hedging with SPX index put options is better than SPY put options (pure index vs its ETF)?
I also thought first about more appropriate Russel 1000 index (RYO) or its ETF (IWB) put options tail hedging, but there is much lower options volume in Russel 1000 compared to SPX (or SPY). What do you think?
I think with recent US overvaluation (stll very high Tobin Q) tail hedging protections may safe one from lot of headaches for little expense. Sorry for my poor English – not my language.
Thanks
Greeting from Europe
Do you suggest the https://portfolioarmor.com/ site?
>Yes, for individual hedges, but I think an index is better because it’s easier to manage.
You think hedging with SPX index put options is better than SPY put options (pure index vs its ETF)?
>No idea. I’d have to test it.
I also thought first about more appropriate Russel 1000 index (RYO) or its ETF (IWB) put options tail hedging, but there is much lower options volume in Russel 1000 compared to SPX (or SPY). What do you think?
>No idea. Again, I’d have to take a look.
https://portfolioarmor.com/ – i checked out the little info they offer before paying and it seems they follow same strategy as I use myself already, except I just use deep OTM put option of one single index (ETF) to hedge the whole portfolio – not precise – but easy and sufficient so far. I use similar strategy as Mark Spitznagel describes in 9th chapter of his book “Dao of Capital” (very nice book BTW), much recommended, if you did not read it yet.
Cheers
Is there any variations on returns if I were to buy the top 15 companies from the all stock screener and the top 15 from the small/micro cap?
That’s not a bad idea. You’ll get a blend of both with no overlapping, and it may lead to better returns.
It’d be interesting to see the results of that. I’ve started buying 5 stocks per quarter from the All Investable screen (2 in 1 month, 1 in the next and 2 in the final month of the quarter). I’ve been kicking around the idea of going to the small/micro screener for the next 5 and then back to all investable. So in a given year I’d end up with 10 from each.