The main strategy is patience to get more margin of safety, especially when a solid company like Adobe gets clobbered 20% for a slightly lower than expected guidance. With a higher 10 year yield of 4.30, long duration tech stories always face more resistance, even more than the overall market. And there’s the volatility as you mentioned. By one measure, trading in options has surpassed that in the stock market for the first time since 2021, according to Goldman Sachs.
I don’t see this froth, volatility and overpricing dissipating; Algo trading, ODTE, (one day expiry options) are pretty much a regular part of the markets now. For us the best strategy is to be patient with limits and accumulate in tranches, even if we miss some opportunities. The goal is a 3-5 year investment and we’re not timing or trading in the market so we’ll have to ride through the rough patches, with confidence in the fundamentals.