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A Media Portfolio for Long-Term Investors

Written by: Rocco Pendola 04/18/12 - 8:00 AM EDT
Tickers in this article: NFLX RCI BCE SIRI TWX MSG P

I purchase more shares in each of these stocks between one and four times a month. I continue on this course, irrespective of any near-term pressure, as long as the long-term narratives I weaved in my previous TheStreet articles on the companies remain intact.

Speculative (Tier One)

  • Buy 50 to 250 shares of MSG
  • Write MSG May $36 or $37 calls if able to get a price of $0.50 or $0.30, respectively, as of Tuesday's close

    • MSG is another long-term stock to scale into over time, but at roughly one-half the pace of portfolio's core holdings.

    Speculative (Tier Two)

  • Buy 50 to 250 shares of P
  • On strength, write slightly out-of-the-money calls 2 to 3 months from expiration

    • Clearly, Pandora represents the most speculative stock of the group. Personally I continue to scale into the position, most recently purchasing shares at $8.38 on Tuesday.

  • >>Also see: Why I Am Long Pandora

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    I have been slowly scaling into the stock since late last year with little concern over the near-term volatility. I feel like I know the company well, thus I have confidence it will execute its long-term vision. More than any other stock in this portfolio, however, a position in Pandora might not work for an investor with even a hint of a faint heart.

    In a future article, I will outline how I would look at working bearish plays on relatively high-priced NFLX and low-priced SIRI into the mix using options.