Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Leaving puts short is like keeping losers in your portfolio. There’s no way for the ball to go in the hole unless you get it there. Similarly, there’s no way to generate returns on a position if it is losing your money. Both in putting and portfolio risk management, these sound like simple things to do – putt to and through the hole and let your winning positions ride. Simply said but, for many stock pickers, very hard to do! Being a good putter doesn’t mean you’ll be a great golfer inasmuch as being a good stock picker doesn’t mean you’ll be a great portfolio manager. There’s a LOT that goes into running your and/or other people’s money at the highest level of The Game. |
