📄 finance-brief.md 7,970 bytes Monday 03:37 📋 Raw

Finance Brief — Midas 🪙

For: Matt Hoffmann (Director)

Cadence: Weekly (Monday mornings), with intraday alerts if triggers hit

Purpose: Macro context, portfolio-relevant signals, watchlist updates, and behavioral guardrails


Section 1: Macro Regime Snapshot

What I Track

Indicator Frequency Why It Matters Source
VIX Daily Fear gauge, options pricing input CBOE
10Y-2Y yield spread Daily Recession predictor, risk appetite FRED
HY credit spreads (OAS) Weekly Credit market health, recession signal ICE BofA via FRED
DXY (dollar index) Weekly International exposure impact, commodity prices ICE
Fed funds futures Weekly Rate expectations, liquidity CME
CPI/PCE releases Monthly Inflation trajectory, real returns BLS/BEA
Sector rotation flows Weekly Where momentum lives, style headwinds/tailwinds Morningstar / ETF.com

Your Relevant Thresholds

  • VIX >25: Risk-off signal. Review margin/cash positions. No new CSPs opened.
  • HY spreads >400bps: Credit stress. Defensive posture. Consider raising tactical cash.
  • Yield curve inversion: Recession watch. Reduce cyclical exposure, add staples/utilities.
  • Tech sector -15% YTD: Rotation confirmed. Your growth names face headwind.
  • Energy sector +20% YTD: Your CCJ thesis gets tailwind. Monitor for profit-taking levels.

Section 2: Portfolio-Relevant Signals

TSLA (32.4% of taxable)

Watch:
- Earnings dates (quarterly)
- FSD/robotaxi news = narrative volatility
- Delivery numbers (monthly)
- China demand / EU tariff changes

Position risk:
- TSLA beta ~2.0 = 2x market volatility
- 50% drawdown = -16% portfolio hit from TSLA alone
- Unrealized gain $57,760 = selling is tax-expensive

Midas action:
- If TSLA hits 35% of taxable → ALERT: Trim required per position cap
- If TSLA drops 30% from entry → ALERT: Reassess thesis, not automatically buy more
- Earnings week → ALERT: Vol spike expected, review any open options positions

LLY (2.0% of taxable)

Watch:
- GLP-1 market share data (quarterly scripts)
- Medicare / insurance coverage expansion
- Competitor pipeline (NVO, VKTX)
- Weight-loss market saturation signals

Midas action:
- If LLY drops 20% from current → ALERT: Rebuild opportunity per your "dip buy" plan
- If GLP-1 market shows signs of saturation → ALERT: Thesis check

PYPL (3.1% of taxable)

Watch:
- M&A rumors (weekly scan)
- Activist investor filings
- New CEO strategy execution
- Take-private speculation

Midas action:
- If acquisition announced → ALERT: Evaluate hold vs. sell
- If no M&A activity by Q3 2026 → ALERT: Thesis decay risk, consider cutting

CCJ (2.2% of taxable)

Watch:
- Uranium spot price (weekly)
- Nuclear plant restarts / new builds (monthly)
- Russia supply disruptions
- Sprott Physical Uranium Trust flows

Midas action:
- If uranium spot breaks $100/lb → ALERT: CCJ momentum acceleration
- If CCJ hits 4% of taxable → ALERT: Concentration risk, CSP no longer appropriate

TSN (2.6% of taxable)

Watch:
- Protein/commodity prices (cattle, feed)
- Inflation data (CPI food component)
- Margin compression/expansion in earnings

Midas action:
- If TSN returns to above book value → ALERT: Value thesis realized, evaluate exit


Section 3: Watchlist / CSP Candidates

Active Paper Trade

  • RIVN $13 Put, June 18 — $0.40 premium collected
  • Check-ins: Wednesday + Friday this week
  • Triggers: $13.50 (watch) / $13.00 (strike) / $12.60 (breakeven) / $12.00 (adjustment)

Future CSP Candidates (Week 2-4)

Ticker Price CSP Strike Notes
CCJ $120.60 $110 ALREADY OWN 2.2% — concentration risk flagged
RGTI $17.50 $15 Speculative, aligns with moonshot interest
GOOG $383.27 $350 Defensive tech, dividend-paying, liquid options
AAPL $280.11 $250 Quality tech, but low IV = lower premium

TSLA Covered Call Note

  • Shares held in non-options brokerage
  • If transferred to options-enabled account: CC at $500+ strikes could monetize $10K+/month in premium
  • Tax consideration: Premium = short-term gain, but shares remain LTCG if called away

Section 4: Behavioral Guardrails

Your Monitoring Frequency (Daily/Hourly)

Midas rule: Check portfolio MAX twice daily. No exceptions.
- Morning: Overnight news, any alerts triggered
- Evening: Close review, no action unless trigger hit

Why: Hourly monitoring creates micro-stress that leads to overtrading. You have a 15-year horizon. Daily price noise is irrelevant.

Your "Blood in the Streets" Philosophy

Midas rule: Every "buy the dip" gets a written pre-commitment:
1. Max % of portfolio this name can reach
2. Max $ loss before thesis declared broken
3. Re-entry plan if sold for tax loss (anti-PLTR protocol)

Your FOMO/Ruin Tension

Midas rule: Retirement age is a PROBABILITY DISTRIBUTION, not a binary.
- Base case: 55 (50% probability)
- Upside: 52 (30% probability)
- Stretch: 50 (20% probability)

This reduces the emotional urgency that drives bad decisions.

Options Trading Rules

Midas rule:
- Paper trade 50+ before live money
- Max 2-3% of portfolio per options trade
- Defined risk only (no naked options)
- Pre-defined adjustment triggers before entry
- "No-touch" rule: no adjustments unless trigger hit


Section 5: Calendar / Event Alerts

Upcoming Events (Next 30 Days)

Date Event Portfolio Impact
Weekly VIX + HY spread check Macro risk gauge
Weekly Sector rotation review Style tailwinds/headwinds
May 6 RIVN mid-week check Week 1 paper trade
May 8 RIVN Friday review Week 1 close
May 12 CPI release (April) Inflation trajectory
May 15 Retail sales Consumer health
TBD TSLA delivery numbers Narrative volatility

Earnings Calendar (Q2 2026)

Ticker Est. Date Midas Alert
TSLA Late July Vol spike, review options
LLY Late July GLP-1 script data critical
GOOG Late July AI capex / cloud growth
AAPL Late July China demand / services rev
PYPL Late July M&A speculation intensifies
CCJ Early August Uranium production / guidance

Section 6: Tax & Account Optimization

Opportunities

  1. Roth IRA: Backdoor contribution possible at your income level
  2. HSA: If eligible, triple tax-advantaged (deduction, growth, withdrawal)
  3. Tax-loss harvesting: PYPL likely underwater. Scan for other losses.
  4. Covered calls on TSLA: Monetize without triggering LTCG. Requires options-enabled brokerage.

Action Items

  • [ ] Confirm HSA eligibility (high-deductible health plan?)
  • [ ] Evaluate Roth IRA backdoor feasibility
  • [ ] Scan taxable account for tax-loss harvest candidates
  • [ ] Consider moving TSLA to options-enabled account for CC strategy

Section 7: Reference — Quick Metrics

Your Portfolio (Taxable)

  • Total: $198,913.51
  • TSLA: 32.4% ($64,485, unrealized gain $57,760)
  • Core ETFs: ~41% (VTI/VB/IJJ/VO/VPU)
  • Satellite singles: ~15% (COST/PYPL/GOOG/SCHW/AAPL/TSN/CCJ/LLY)
  • Cash: ~3%

Your Savings Rate

  • 403b: 15% gross
  • Taxable brokerage: 5% gross
  • Total: 20% gross

Retirement Math

  • Base case (50%): 55 years old without inheritance
  • Upside (30%): 52 years old with $1-2M inheritance
  • Stretch (20%): 50 years old with inheritance + outperformance

Position Cap Rules (Proposed)

  • TSLA: 35% hard cap of taxable account
  • Any single name: 15% soft cap, 20% hard cap
  • Options allocation: 10-15% of total portfolio
  • "Moonshot" book: Max 10% of total portfolio

Finance Brief created: 2026-05-04
Next update: 2026-05-11 or upon trigger event