lystn

Alright! Hey everyone. It’s Kirk, here again at Option Alpha and welcome back to the daily call. In today’s call, we’re going to talk about how often you should review your options portfolio. This is I wouldn’t say near and dear to my heart, but I often get people who practically don’t even review their portfolio at all, just make trades and then just assume it blindly is going to work out. But I think you should review your portfolio at least on a weekly basis. This is why I say this because I understand that life gets in the way and for me too. I’ve got two girls and my wife is at home too, so I don’t even get that much time to do these podcasts and these audio recordings as it is now, plus everything else that I don’t have time every day to do an in-depth review of my portfolio. But I believe that at least weekly, you should be doing it. For me, this is where actually the weekly strategy calls with elite members was bred out of or was born out of. What I used to do is Sunday nights, I would sit down and review all my positions heading into the week and what positions were challenged, what positions could potentially be taken off, start analyzing our portfolio balance and our Beta-weighting and were we heading into expiration week or not, all of these things you should start asking yourself about, positions and questions. But I did it on Sunday nights because for me, that was the time I could separate myself and get some quiet time and it wasn’t during the market days or weeks and it wasn’t during the middle of the week. I could plan in advance. That worked for me and that’s where we eventually started doing strategy calls with elite members and then they would now join and we do one every Sunday night. But I think you should at least do it once a week and reason is because one, your portfolio shouldn’t be changing that much day to day. If you’re not day-trading options which you shouldn’t be and you’re doing these more position or weekly type trades, you don’t need to review a complete analysis of your portfolio every single day. You should have a pretty good idea every week of whether you’re a little bit too bearish or a little bit too bullish. Like right now, our portfolio is a little bit bearish, meaning if the markets go down a little bit, that would actually be more profitable for us overall. Not any one particular position, but just overall in our portfolio. I know that now. Now, I can build my portfolio out for the rest of this week and start adding positions that maybe can get us a little bit more back to neutral, this concept of just adding more bullish positions when we already have enough bearish positions on. Again, that doesn’t need to happen since we’re doing monthly trades that are 30, 40, 50, 60 days out. We don’t need to reevaluate that every single day because those positions are not generally moving that much. That’s how often I think you guys should review your portfolio, at least once a week. If you can do it at least once a week, great! If not, at least every other week and definitely not once a month. I think once a month is too long. You should actually be starting to do a lot of Beta-weighting analysis weekly or by weekly at the very minimum. Hopefully that helps out as always. Until next time, happy trading!