Timing plays an important part in options. I sold put on my JD and BABA too early. If I have waited for the drop due to the crackdown, the premium will be very juicy. How will I know the drop is coming? HAHAHA, I won’t know. Nobody knows.
This is just a short post to update my options trade.
I sold 2 BABA options in early July at low XIRR 8% and again on 30th July another BABA option at a low XIRR of 8.9%. I sell put on ABNB at 120 to expire on 27th August 2021. This has an XIRR of 16%. I think Money Wise Smart’s Rupam had taught that the minimum XIRR should be 20%.
The sell put option on 9618.HK JD will expire on 29th July 2021 and the share price was around HKD 279 per share. This will cause an assignment of shares. I buy back the put at HKD 28.5 and sell another put at HKD 34. This allows me to pocket HKD 2702 in premium for this rollover. This contributes to about HKD 5.4 per share. It means even if I am assigned, I am buying 9618.HK JD at HKD 300 less HKD 5.4, this works out to be HKD 294.6 per share.
On the last day of July, I sell put on Amazon after the results came out with a 7.5% drop. I need to celebrate this day with a sell put, I think I was a bit too excited and forgot the risk. This option requires a margin of USD 320,023. I pocket USD 45. The risk-reward does not make sense. One day this type of trade will kill this SAXO account. Once I placed the Amazon trade, the margin immediately hit 69% utilization. In my main account, I have the required margin to buffer any black swan event.
I have achieved USD 944 in options premium this month. The total premium to date has USD 17,290 which I should channel to buy stocks. I did not record whether I have utilized this amount. This is another thing to do.
July 2021 Expenses
July 2021 expense is kept at S$5,157.71/= Actually this lockdown and no dining out is good in a way that it helps to cut down on dining expenses. However, no date night means an unhappy wife.
We spent more this month on Shopee for every single thing for the baby. Sometimes I need to ask myself why Shopee at USD 200/share I never buy this company? Actually, I saw Shopee at USD 30+/share before but I have not joined The Full-Time Investor (this is my affiliate link if you are keen to sign up). Hence, I do not know how to evaluate a loss-making company then and miss out on this once-in-a-lifetime opportunity. It is a good reminder that I should not be penny wise pound foolish, always invest in knowledge. The return is in multiple folds.
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