{"id":27393,"date":"2025-01-15T00:52:24","date_gmt":"2025-01-15T00:52:24","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/rutherford-darwin-portfolio-review-10-january-2025\/"},"modified":"2025-01-15T00:52:24","modified_gmt":"2025-01-15T00:52:24","slug":"rutherford-darwin-portfolio-review-10-january-2025","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=27393","title":{"rendered":"Rutherford-Darwin Portfolio Review \u2013 10 January 2025"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div itemprop=\"text\">\n<div id=\"attachment_61582\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-61582\" data-attachment-id=\"61582\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/sunrise_1\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-scaled.jpg\" data-orig-size=\"2560,1707\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS RP&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1736498944&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;55&quot;,&quot;iso&quot;:&quot;640&quot;,&quot;shutter_speed&quot;:&quot;0.005&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Sunrise_1\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Winter Sunrise in Oakville, Ontario, Canada&lt;\/p&gt;&#10;\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-300x200.jpg\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-1024x683.jpg\" class=\"size-large wp-image-61582\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-1024x683.jpg\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 1\" width=\"1024\" height=\"683\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 1\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-1024x683.jpg 1024w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-300x200.jpg 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-768x512.jpg 768w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-1536x1024.jpg 1536w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/Sunrise_1-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/p>\n<p id=\"caption-attachment-61582\" class=\"wp-caption-text\"><em>Winter Sunrise in Oakville, Ontario, Canada<\/em><\/p>\n<\/div>\n<p>I will start this post with my usual weekly look at US Equity markets through the eyes of the S&amp;P 500 Index (SPX):<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61571\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/2025-01-12_11-19-44\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44.png\" data-orig-size=\"1920,971\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"2025-01-12_11-19-44\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44-300x152.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44-1024x518.png\" class=\"aligncenter wp-image-61571 size-full\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 2\" width=\"1920\" height=\"971\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 2\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44.png 1920w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44-300x152.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44-1024x518.png 1024w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44-768x388.png 768w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-19-44-1536x777.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\"\/><\/p>\n<p>where we see that, after starting the week strongly on Monday, the markets deteriorated badly going into the end of the week. We are now sitting on that neckline support\/resistance line that we have been watching for the past few weeks. In fact, we closed slightly below the 5840 level and might be looking at a test of the 5680 level if we see a continuation of this pullback.<\/p>\n<p>In terms of relative performance, asset classes in the \u201cnew\u201d Rutherford-Darwin Portfolio look like this:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61566\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/2025-01-12_10-15-20\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20.png\" data-orig-size=\"1885,351\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"2025-01-12_10-15-20\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20-300x56.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20-1024x191.png\" class=\"aligncenter wp-image-61566 size-full\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 3\" width=\"1885\" height=\"351\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 3\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20.png 1885w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20-300x56.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20-1024x191.png 1024w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20-768x143.png 768w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-15-20-1536x286.png 1536w\" sizes=\"auto, (max-width: 1885px) 100vw, 1885px\"\/>with only Oil and Silver showing positive returns over the past week.<\/p>\n<p>Although I plan to Review the Rutherford-Darwin Portfolio as a single portfolio it is really three portfolios (3) combined into one. The reason for presenting it this way is to demonstrate how diversified strategies can be combined to generate desired returns whilst (hopefully) keeping wealth risk to a minimum and acceptable overall volatility.<\/p>\n<p>The Rutherford-Darwin (R-D) Portfolio starts out with $70,000 to invest. Of this $70,000, I will start by allocating $50,000 to \u201crisk-free\u201d investments \u2013 at the present time this will be to BIL \u2013 the 1-3 month T-Bill ETF that is paying ~5% yield. So, right off the bat, I have limited the total portfolio risk to less than 30% and a 30% Draw-Down \u2013 and this portion will need little or no monitoring other than to check, occasionally, that there are no better \u201crisk-free\u201d alternatives.<\/p>\n<p><strong>Darwin\u00a0<\/strong>(<a href=\"https:\/\/itawealth.com\/rutherford-portfolio-review-part-1-3-january-2025\/\">https:\/\/itawealth.com\/rutherford-portfolio-review-part-1-3-january-2025\/<\/a>)<\/p>\n<p>For the second portion of the portfolio \u2013 that I will refer to as the Darwin portion \u2013 I have allocated a nominal $10,000 to a classical portfolio of nine ETFs covering all the major asset classes and with a wide range of correlation between the asset classes. Allocations to each ETF are based on Risk Parity (i.e. more volatile ETFs are allocated less funds than lower volatile ETFs) and, on top of this, I have set a very modest 2% (of the $10,000) volatility target for each ETF. Thus, I anticipate experiencing low volatility \u2013 less than ~10% \u2013 in this portion of the portfolio. I do not anticipate making a lot of adjustments \u2013 maybe quarterly if allocations get seriously out-of-balance \u2013 unless market conditions are obviously changing significantly. Otherwise, this will be a Buy-And Hold portfolio with holdings in all nine (9) ETFs.<\/p>\n<p>The initial holdings look like this:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61570\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/2025-01-12_11-22-38\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38.png\" data-orig-size=\"966,629\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"2025-01-12_11-22-38\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38-300x195.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38.png\" class=\"aligncenter size-full wp-image-61570\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 4\" width=\"966\" height=\"629\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 4\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38.png 966w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38-300x195.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-22-38-768x500.png 768w\" sizes=\"auto, (max-width: 966px) 100vw, 966px\"\/><\/p>\n<p>With individual holdings shown along the left-hand axis and total Portfolio Value shown by the heavy red line and values on the right-hand axis.<\/p>\n<p>As can be seen above, more funds are allocated to EFA and EEM (International Equities) than to IBIT or SVXY (Cryptocurrency and Volatility ETFs) and the portfolio is not fully invested, with ~$1,250 in Cash. If I wish to be fully invested I will simply increase the target volatility level to, say, 2.5% or 3%. I\u2019ll start here and see how things go.<\/p>\n<p>Obviously, this portion of the portfolio did not get off to a great start as it was a bearish start to 2025 with only Oil (USO) and Silver (SLV) showing positive returns as noted in the second screenshot above.<\/p>\n<p><strong>Rutherford\u00a0<\/strong>(<a href=\"https:\/\/itawealth.com\/rutherford-portfolio-review-part-2-options-6-january-2025\/\">https:\/\/itawealth.com\/rutherford-portfolio-review-part-2-options-6-january-2025\/<\/a>)<\/p>\n<p>The last $10,000 I will use to buy <strong>Options<\/strong> on the same 9 ETFs chosen for the Darwin portion of the portfolio \u2013 but I will make discretionary decisions depending on whether I feel bullish (when I will buy Call Options) or bearish (when I will buy Put Options) on each ETF. I will attempt to limit my risk here to less than $1,000 on each ETF in which I am holding a position. I will not always be holding a position in all nine ETFs \u2013 if I am neutral in my belief as to which way prices may move, I will stay out of the market. Because Options are derivative products they are leveraged instruments and, as such, we can expect significantly more volatility in this portion of the portfolio.<\/p>\n<p>Initially, I have opened one bullish position \u2013 buying Call Options in USO (Oil) \u2013 and four bearish positions, buying Put Options in EFA and EEM (International Equities) and in VNQ (Real Estate) and TMF (Treasury Bonds). I am currently neutral on the other ETFs\/asset classes so have no position.<\/p>\n<p>Performance of the holdings to date looks like this:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61567\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/2025-01-12_10-41-46\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46.png\" data-orig-size=\"1016,586\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"2025-01-12_10-41-46\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46-300x173.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46.png\" class=\"aligncenter size-full wp-image-61567\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 5\" width=\"1016\" height=\"586\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 5\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46.png 1016w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46-300x173.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_10-41-46-768x443.png 768w\" sizes=\"auto, (max-width: 1016px) 100vw, 1016px\"\/><\/p>\n<p>and we are off to a nice start with $1,695 profit on investments of ~$4,000 in 5 days. The remaining $6,000 balance is in Cash. Of course, we cannot expect this to continue and, as mentioned above, we can expect to see a lot of volatility in this portion of the portfolio.<\/p>\n<p>Putting the three segments together, this is what the overall total picture looks like:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61569\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/2025-01-12_11-21-59\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59.png\" data-orig-size=\"972,627\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"2025-01-12_11-21-59\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59-300x194.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59.png\" class=\"aligncenter size-full wp-image-61569\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 6\" width=\"972\" height=\"627\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 6\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59.png 972w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59-300x194.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/2025-01-12_11-21-59-768x495.png 768w\" sizes=\"auto, (max-width: 972px) 100vw, 972px\"\/><\/p>\n<p>With the Darwin and Rutherford portions shown in dark blue and brown, with values on the left-hand axis, and the \u201crisk-free\u201d and Total Portfolio shown in red and green, with values on the right-hand axis.<\/p>\n<p>What we would like to see is a nice green total portfolio equity curve with relatively low volatility. I am not sure how easy it will be to show the component contributions going forward as adjustments are made \u2013 primarily to the Rutherford Options portion of the portfolio \u2013 but I\u2019ll worry about that when we get there.<\/p>\n<p>Let me know if you have any ideas as to how I might make this simpler\/clearer going forward \u2013 or any other comments you might have regarding the idea of combining different strategies.<\/p>\n<p><strong>Update: 13 January 2025<\/strong><\/p>\n<p>With the markets looking weaker again this morning I have now gone bearish on SVXY (expecting Volatility to increase):<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61595\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/svxy-2025-01-13_12-07-24\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24.png\" data-orig-size=\"779,488\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"SVXY 2025-01-13_12-07-24\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24-300x188.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24.png\" class=\"aligncenter size-full wp-image-61595\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 7\" width=\"779\" height=\"488\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 7\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24.png 779w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24-300x188.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SVXY-2025-01-13_12-07-24-768x481.png 768w\" sizes=\"auto, (max-width: 779px) 100vw, 779px\"\/>and SPY:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"61594\" data-permalink=\"https:\/\/itawealth.com\/rutherford-darwin-portfolio-review-10-january-2025\/spy-2025-01-13_12-05-57\/\" data-orig-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57.png\" data-orig-size=\"779,484\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"SPY 2025-01-13_12-05-57\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57-300x186.png\" data-large-file=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57.png\" class=\"aligncenter size-full wp-image-61594\" src=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57.png\" alt=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 8\" width=\"779\" height=\"484\" title=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 8\" srcset=\"https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57.png 779w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57-300x186.png 300w, https:\/\/itawealth.com\/wp-content\/uploads\/2025\/01\/SPY-2025-01-13_12-05-57-768x477.png 768w\" sizes=\"auto, (max-width: 779px) 100vw, 779px\"\/><\/p>\n<p>I have purchased two (2) $49 Strike Put Options, expiring 21 March (in 67 Days \u2013 a little further out in time than the Options that I purchased last week), in SVXY for 3.50 ($700). These Options have a \u201cDelta\u201d of ~ -0.52 and so the position is equivalent to being short 100 shares.<\/p>\n<p>I have also bought one (1) $590 Strike Put Option, expiring on February 28 (in 46 Days), in SPY for 18.62 ($1,862). I am not totally comfortable with the SPY Option since it is an expensive Option due to the fact that SPY is an expensive ETF (~$580) and the maximum risk is ~$1,800 rather than ~$800 as for most of my other positions. I would have preferred to keep risk at the same level for all holdings \u2013 but I can\u2019t find a lower cost ETF tracking the US Equity markets with the same level of liquidity as SPY. But, with a \u201cDelta\u201d of ~-0.63, this is equivalent to being short 63 shares of SPY valued at ~63 x $580 = ~$30,000 \u2013 significant leverage with ~6% (of $30,000) risk! We\u2019ll see how this goes \u2013 I may have to switch to a lower cost, but less liquid ETF, like VTI.<\/p>\n<p>(Visited 29 times, 2 visits today)<\/p>\n<div class=\"sharedaddy sd-block sd-like jetpack-likes-widget-wrapper jetpack-likes-widget-unloaded\" id=\"like-post-wrapper-56068088-61565-678706c7e85d8\" data-src=\"https:\/\/widgets.wp.com\/likes\/?ver=14.2.1#blog_id=56068088&amp;post_id=61565&amp;origin=itawealth.com&amp;obj_id=56068088-61565-678706c7e85d8&amp;n=1\" data-name=\"like-post-frame-56068088-61565-678706c7e85d8\" data-title=\"Like or Reblog\">\n<h3 class=\"sd-title\">Like this:<\/h3>\n<p><span class=\"button\"><span>Like<\/span><\/span> <span class=\"loading\">Loading&#8230;<\/span><\/p>\n<p><span class=\"sd-text-color\"\/><a class=\"sd-link-color\"\/><\/div>\n<div class=\"wp-block-group has-border-color\" style=\"border-style:none;border-width:0px;margin-top:32px;margin-bottom:32px;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px\">\n<div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\" style=\"margin-bottom:24px\"\/>\n<h3 class=\"wp-block-heading has-text-align-center\" style=\"margin-top:4px;margin-bottom:10px\">Discover more from ITA Wealth Management<\/h3>\n<p class=\"has-text-align-center\" style=\"margin-top:10px;margin-bottom:10px;font-size:15px\">Subscribe to get the latest posts sent to your email.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Winter Sunrise in Oakville, Ontario, Canada I will start this post with my usual weekly look at US Equity markets through the eyes of the S&amp;P 500 Index (SPX): where we see that, after starting the week strongly on Monday, the markets deteriorated badly going into the end of the week. We are now sitting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":27394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96],"tags":[3805,9162,3749,18706],"dealstore":[],"offerexpiration":[],"class_list":["post-27393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-january","tag-portfolio","tag-review","tag-rutherforddarwin"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rutherford-Darwin Portfolio Review \u2013 10 January 2025 - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=27393\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rutherford-Darwin Portfolio Review \u2013 10 January 2025 - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Winter Sunrise in Oakville, Ontario, Canada I will start this post with my usual weekly look at US Equity markets through the eyes of the S&amp;P 500 Index (SPX): where we see that, after starting the week strongly on Monday, the markets deteriorated badly going into the end of the week. 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