top fifteen ideas for the quarter ahead driven by a combination of technical analysis, fundamental analysis, and options flow positioning. These names will be curated from the Annual Hawk Top Stocks. These are equity positions that can utilize options for protection and/or income strategies (covered calls, collars, married puts) if the environment calls for it or there is an expected event driven catalyst such as earnings.
During the quarter there are often multiple swings and rotations on smaller scale and timeframes. These positions are usually still fundamental leaders, but more so weighed on their technical stance, institutional options flow and upcoming events. Often this combination can provide fairly fast and defined moves when timed correclty.
Option & Event Opportunities
Short term event driven opportunities for the portfolio can add another level of alpha as we build. These positions tend to be more asymmetrical risk to return putting small amounts of the portfolio to work where if we are wrong it is no big deal, but when we are right it can be noticeable. These are much smaller positions and shorter time frames in general. this would include tagging along with large institutional options flow, earnings movement forecasts, and short term known events on the horizon.
Small Cap Gems
One of Joe's favorite part of the deep dive a fundamental and theme analysis he is known for is pulling out these small cap gems. These are is the often unknown companies he uncovers during his theme research. Many are in the very early stages, and often pop out to him before they make their big moves. This is another area of the portfolio that tends to have a much smaller allocation, but just capturing a few here or there makes it all worth it.