Live: Friday, December 13, 2019

1:55 p.m. New York time

I’m starting a somewhat different sort of portfolio, one that gives me an ability to provide a specific sort of business rather than a strategy. Initially, I shall be focusing on companies developing medical uses for genetics, and shall call the collection the Genetics Portfolio.

Like my current portfolios — the primary Growth Portfolio and secondaries Momentum and Value — the new portfolio will use Zacks Investment Research metrics as a way to pick from a pool of stocks. My strategy portfolios use the entire pool of symbols having a strong buy (rank 1) assessment from Zacks. The new sector portfolio, Genetics, will draw from a pool of genetics companies that are held by the exchange-traded fund ARKG.

The first buy in the new portfolio is GH, for $74.25 per shares. I shall be adding periodically as funding becomes available. My selection rules are that a purchase must have a buy (rank 2) or strong buy (rank 1) from Zacks, along with good grades (A or B) from at least one of the three strategy rankings, value, momentum and growth. A rank below 2 or strategy rankings that are all C or lower will be a signal to exit the position.

The sector portfolios are designed to take advantage of free trading — no fees — and also the fact that funds must publish their holdings periodically, providing a ready-made pool. The fund itself will provide a measure of how the subset I pick is doing. I’ve chosen Robinhood to house this strategy, and they are about to bring a partial shares system online, another attractive feature for a portfolio where my aim is to dedicate the same amount of money for each purchase.

Ideally, this method will outperform the fund that forms the pool from which I draw trades. The name of my pool? The Gene Pool, of course.

12:15 p.m. New York time

I’ve updated XOP Analysis with results.

12:05 p.m. New York time

I’ve exited XOP, the last of my options iron condor positions expiring Dec. 20, and shall update the analysis shortly with results.

In shares, I exited my position on FANH for $25.01 per share, a loss of $1.16. The trade resulted in a 4.4% loss over four days, or a -404% annual rate.

By Tim Bovee, Portland, Oregon, December 13, 2019

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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