JC Option Fund November 2021

JC Project Freedom Journey Towards Financial Freedom
JC Option Fund November 2021

This short update is to capture what we did in November on options. In short, we sell Put on StoneCo at Strike Price US$20, expiring January 2023. I executed 10 contracts with a premium of US$5 each. The total premium collected is around US$4,970. The XIRR is around 27%.

Total options we have 22 options on StoneCo, with an average price of around US$26-27. The required commitment funds will be around US$58k – 59k.

You can read here about StoneCo:
Why the fall?
Brief Study on StoneCo

Source: Tradingview.com

To add some Technical Analysis to this, StoneCo is at its low over the last 3 years. The lowest share price hit US$14.55. There is no change in trend at sight, it is still on its downward trend.

We bought the shares in a few tranches and brought the average price to be around US$20.32. We wanted to save the last tranche for the US$10~ range and deploy the fund to an ETF while waiting.

Present cash left at 3% of total net worth. Cash is not trash and it can be an asset when opportunities present. This level of cash is slightly concerning.

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