From Theory To Practice - July 23, 2021 - Highlighting Duration Over Direction

Whenever you make an adjustment to a position, especially an undefined-risk position, that adjustment usually comes in the form of one or two different types: rolling the untested side or rolling out in time. Many times, we’ll do both together to most aggressively reduce our risk in the position. But sometimes, it makes more sense to do one, while not doing the other.

With our XLE position in the portfolio, we see exactly that, as we choose to highlight duration over direction first and foremost.