JC Options Fund
This year 2021 started with me flew out of Malaysia and spent 14 days quarantined in a hotel. There were a lot of things going on in my personal life and family as well. It is a very busy time for the family. I just want to quickly document what we did in terms of investments. Firstly, I will talk about picking pennies in front of the train which is our JC Options Fund.
Recap of painful lesson
I had this conversation with one of the financial blogger Ms Niao and it was not worth the effort to trade options. I was burnt quite badly when the black swan event of oil price dropped during the COVID-19 and my options were exercised. You can revisit my painful lesson in the link. I had USD 137,500 exercised in both RDS.B and MPLX, right before the oil price dropped and I switched everything to RDS.B. After that, it dropped with gravity. In short, I was hit by the train while picking the pennies.
In January 2021, I sold JD.com option, 1 HK option for JD.com is 500 shares, the total amount is HKD 150,000 if exercised. On hindsight, it makes more sense to own SE and CRWD outright then sell options on them. I have the intention to own them if exercised.
In February 2021, I sold PUT on CLOVER Health, this is a speculative play to support the small boy in the industry. Read it here for another story of David versus Goliath. Palantir and Unity are companies that I will like to own for the long term, I do not mind if they are exercised. Unfortunately, the share price of Palantir propelled from USD 24.6 to USD 28 last night. I sold a CALL on Unity after buying another 25 shares to make it 100 shares.
Updated on 28th February 2021
On Friday 26 February 2021, it was another volatile night, I sold another SE PUT option at 225, asking for a little USD 52 premium when the share price was around USD 235. It dropped immediately after I key the order, it went as low as USD 226 while I was awake. I could have gotten a higher premium. I think I am going to hate myself in the future, I should have done a buy CALL option or buy the shares outright.
I will like to give tribute to GIM framework and mentorship program. It helps me to understand about buying high quality business rather than cheap business. You can use my affiliate link to sign up for the Growth Investing Masterclass (GIM) here.
The last 2 months of picking pennies are just about sufficient to cover the cost of quarantine. The options fund should be kept at <100 k to provide liquidity to trade. The key is to focus on my main portfolio. From the main portfolio, I carve out 100 k for 10 speculative stocks which is like a VC fund.