Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: David Semoreson who wrote (88378)	1/12/2001 11:47:01 AM
From: Knighty Tin	Respond to of 132070

David, In all of my portfolios, Max income, cap appreciation, 90/10, I don't allow any one issue, in this case, ASA, to be more than a certain size. In max income, that is 7.5% of the total portfolio. And it includes all variations of the issue: credit spreads, debit spreads, buy writes, secured puts, conversions, reverse conversions (I haven't done a reverse since the Earth was cooling), etc. Now, I can also use a full position of long stock in the cap app portfolio, which I have, and long calls or puts in the 90/10, which I do not have. Basically, I don't want any one issue to set the tone for the entire portfolio. 7.5% is important, but not vital. For others, that % may be 10% or 15%. In max income, I can even see 20% in some cases where you are very well hedged. In practice, I usually have a bunch of positions in the 2.5% and 5% categories and very few full positions. But, once I am full, I do not use that name for new trades in that portfolio.