Cryptocurrency is an appropriate currency hedge and a good supplement to precious metals and other strategies as diversifiers for your portfolio.

Source: CNBC via Twitter

Cryptocurrencies have gotten a lot of attention recently in the investment community. The cryptos’ have had a nice run up in price and are looked at by many as being a solid hedge against dollar weakness or inflation. Stanley Druckenmiller was recently on CNBC talking about his Bitcoin position, and said that “if the gold bet works then the bitcoin bet would probably work better because it is thinner and more illiquid”. …

The Global X NASDAQ 100 Covered Call ETF (QYLD) is a Solid Income Vehicle

Photo by Austin Distel on Unsplash

With the recent weakness of the NASDAQ index relative to the S&P I have been looking for spots to add to some positions at good prices. My long-term core holdings Amazon and Alphabet Inc. have taken a rest in the last few days and I will be looking for spots to add to them, but today I wanted to talk about a related strategy.

I have been invested in the Global X NASDAQ 100 Covered Call Fund (QYLD) for almost two years now. The fund uses a covered-call strategy and overwrites 100% of the underlying stock portfolio. QYLD has generated…

Low stock price, reasonable implied volatility, and liquid contracts make it an covered-call candidate.

Photo by Sharon McCutcheon on Unsplash

Sandstorm Gold (SAND) has been a “trading sardine” for me for well over a year. What does that mean? It means that it does not meet my criteria to be a core holding in my portfolio but it does have characteristics that make it a good trading vehicle.

The company is a small-cap gold miner with little debt. The firm recently reported $6.5 million in quarterly earnings on revenues of $23.3 million. Not highly profitable given that the market cap is about $1.57 billion. …

A house divided is a positive for the markets?

Dr. Ding was up late last night! He has Biden pulling out a squeaker 270-268 once all the votes are counted.

Meanwhile, NPR has the Senate staying in Republican hands.

Exiting QQQ Calls and adding to AMZN

We are having a nice rally to start the day. This morning I sold the QQQ 11/13 276 Calls at $7.06 that I purchased at $6.02 on 10/30. The purpose of the buy was to provide more upside index exposure with limited risk. Because the rally is stronger than I was expecting to see I locked in the gain on these.

I also added to Amazon (AMZN) this morning at $3006. This is my largest holding and I think it could climb to the $5,000 – $7,000 level over the next few years…

Here are my reasons for a somewhat bullish stance this morning.

First, the chances of an uncontested Biden win appear to be improving. Biden widened his lead in The final PoliticalIQ Florida poll from two points to four. A Biden win means the likelihood of a rally in anticipation of a large stimulus package.

Second, therapeutics and vaccines for the treatment of COVID are closer than ever. A rational science-based approach to dealing with the pandemic may be closer as well. …

The markets are showing some pre-election nerves

Started the morning with 6% cash after liquidating almost all of my ProShares Short S&P 500 (SH) short hedge position yesterday (At least a day early! SMH). Purchased a 1% position in Twitter (TWTR) on post-earnings weakness. As Doug Kass refers to it; Twitter is a trading sardine. I take this to mean he looks to buy it “on sale” and then unload the shares later (hopefully for a nice profit), as opposed to “investing in the business” for the long term.

The company reported strong earnings per share yesterday, but user growth…

Why are many of them listed at negative rates of return?

I was having a conversation recently with a friend who had bought an exchange-traded fund that invested in TIP’s. She was concerned because the fund was down slightly from where she had bought it. Her understanding was that TIP’s are treasury bonds, meaning guaranteed by the US Government and that she was also protected against inflation. I explained to her, yes she was correct, with a qualification. …

Sage Goodman

Child of the Seventies, educated in Philosophy, Business and Finance, with a taste for the offbeat and unusual. Get cranky when my PDE5 Inhibitor runs out.

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