Stocks Of The Week: My Holdings, Russell Reconstitution & Limit Orders

Summary

  • I haven’t put out an updated list of my holdings lately, so here it is for your modeling use.
  • Here are my limit orders for stocks I am looking to add where I’m not using bottom fishing prices.
  • A few of our small caps are likely to be added to the Russell 2000 in June which is adding 8 new stocks, Planet leads the list.

Stocks Of The Week is my summary of the Plug & Play Stocks to focus on through all the noise and volatility. This week I take a look at my holdings, limit orders and the Russell 2000 rebalancing.

My Holdings

I am including my holdings for both growth and retiree investors. In the chart you’ll see two position sizes, one for growth investors, one for retirees.

I am also including a column for puts sold which will add to my position if assigned. My cash position is still around 40%, but with about half of it held by puts. Many of my current positions are from puts that were assigned to me in recent months.

It is up to you to determine where your risk tolerance and goals best fit. 

StockGrowth Position SizeCash-Secured PutsRetiree Position SizeCash-Secured Puts
(AMTX)fullhalfhalfhalf
(ASTS)halfhalfhalf
(AZRE)– halfhalf
(BKSY)halfstarter
(CZOO)starterstarter
(DNA)starterstarter
(F)almost doublefull
(HRTX)halfhalfhalfhalf
(INTC)halfhalf
(JMIA)halfhalf
(KMI)*halffull
(NFE)*halfhalfhalfhalf
(OPEN)starterstarter
(PARA)fullfull
(PL)fullhalf
(SATL)starterhalfstarterhalf
(SPIR)starterstarterstarter
(SPWR)halfhalf
(SQ)halfstarter
(T)fullfull
(TDOC)halfhalf
(U)halfstarter
(WBD)fullfull

* I have covered calls written on NFE & KMI and am rolling those, as well as, trying to replace the likely to be called away shares with put selling and/or purchases. 

I have covered calls expiring on several stocks in June and July that are very likely to be out of the money, so, nothing called away, the exception is New Fortress and Kinder Morgan. 

Russell Rebalancing & My Limit Orders

I am looking to play the likely continuation of this rebound rally this week. The oversold signals and advance/decline line both signal a near term rally.

First Leg Of Bear Market
First Leg Of Bear Market (Bloomberg)

I don’t think it has long-term legs as I’ve said before, but it’s tradable AND several stocks are worth buying regardless of the market. Those stocks are the ones I’m focusing on. 

The problem with a lot of the analysis out there is that it is locked into the past five years versus the past fifteen as it should be. The Fed QE age is not gone, but we are in a pause, and that means volatility. 

My guess is that this rally has legs into the middle of this month, then quantitative tightening should start to impact liquidity. In a market with less cash, large caps sell off because they are more expensive. Low priced stocks, generally SMID caps tend to hold up well and then lead on the rebound down the road. We have already started to see that in recent weeks. 

The Russell 2000 is in the midst of its annual reconstitution. New stocks being added must have a minimum market cap of $257 million as of May 6th. A few of our stocks are likely to be added, including Planet Labs (PL) and AST SpaceMobile (ASTS). Ginko Bioworks (DNA) should get added to the Russell 1000. The announcements are on June 3rd, so, little time to waste if you want these. 

Getting added to indexes increases institutional demand which in turn creates share price appreciation that retail investors chase. So, I am looking to add to the three stocks above. 

I am going to sell puts on Planet and AST Spacemobile since I have the positions I want, but, would take more cheaper. In all likelihood, I’ll just end up keeping the income. 

If you do not own PL and ASTS, take at least a starter sometime Tuesday or Wednesday. 

I am going to buy more DNA and I’ll be buying at the market Tuesday or Wednesday. 

Not a lot of finesse here, just rounding out positions. 

Beyond rebalance stocks, I am looking to add to Square/Block (SQ) and am not sure I’ll get a chance. I’m sticking with $80 as my GTC limit buy. 

For those of you without Paramount (PARA), there’s pretty huge support now with Berkshire (BRK.B) accumulating. I doubt we see sub $30 again, but you can try to get $30. I think selling cash secured puts and taking a starter makes a lot of sense.  I’ll outline a strategy in Retirements Income Options.

Disclosure: I/we have a beneficial long position in the shares of ASTS, DNA, PARA, PL either through stock ownership, options, or other derivatives.