February has been another volatile month in the stock market this year with no clear signs of directions. Every rally was short-lived and when the market started to get optimistic, it was followed by a few red days, after getting spooked by fears and uncertainties.
Trading has been challenging in this kind of market but I have used the principles and strategies that I have shared previously to help me generate some decent returns for this month.
If you have missed out on that article, you can refer to it here:
How Not To Lose Money In Trading? | My Trading Strategies For Bullish, Bearish And Volatile Market
SGD$13,092 (USD9697) Increase In Profits For Feb
According to total profit table that I tracked the monthly increase in profits, I have made SGD$13k (or USD9.6k) in the month of February. This includes SGD4.5k (USD3.33k) worth of open options contracts that will expire in March 2022. The closed contracts (i.e. confirmed profits) brought in SGD8.5k (USD6.3k).
Percentage Returns
The returns I get from trading options in Feb is 1.67% and that is the returns off my total capital of 785k. If I only factor in the capital that is set aside for Wheel (CALL/ PUT) and minus the money stuck in LEAPS, then my returns for February will be 3.58%.
Summary of Trades
If you look at the summary of my trades, you may see a few observations.
I most trade/ sell covered calls (highlighted in yellow) and most of my trades are profitable (highlighted in green). The reason could be that I followed my strategy of selling OTM Covered Call in a volatile market and kept rolling them when the share prices fell.
One good illustration of how effective this strategy is seen in the profits that I made while trading Tesla stock in Feb:
How I Made USD5446 This Month By Trading Tesla Stock (Not By Shorting Or Buying PUT)
Concluding Thoughts
Ever since I started my options journey in late Feb 2021, I have managed to get positive returns every month. Maybe I got lucky in 2021 as for the most part of the year, we were in a bullish market. However, in the last 3 months (Dec 21 to Feb 22), the market was going through a huge correction and that is where the real test of a trader comes. I actually used 2 very simple option trading methods, Wheel and LEAPS, to achieve my returns.
In this blog, I share all that I have learned, my strategies, my trades, my capital & returns, my profits & losses, and everything I can share. There is no courses to sell, no membership to sell, and I answer every question and comment posted on this blog. I sincerely hope that someone reading this blog can benefit from it, even many years from now. The strategies are like mathematic formulae, they will not change with time. The only thing that changes is market conditions and marco enviroment, you just need to apply the right strategies accordingly.
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Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading
The LEAPS Strategy has helped me make more than USD120,000 in 2021. Here’s all you need to know about this strategy that can help you increase your wealth exponentially:
The Ultimate LEAPS Options Thread
Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts behind executing these trades:
MY TRADES
Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
How To Buy Options on Interactive Brokers (Step-By-Step)
If the bear market in 2022 is making feel depressed as your stocks come tumbling down, read this article to find out how you can use options trading to help you claw back some of your losses as you await market recovery:
How I Do Earn Even When The Stock Market Is Bearish?
I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day
I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months
Want to learn more about Technical Analysis (TA) but find it difficult to grasp the concepts? This article brings you TA at a glance, and helps you understand key terminologies, indicators, and techniques used in TA to equip you with the knowledge that can empower you in your investing/ trading journey.
The Newbie Guide To Technical Analysis (TA)
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Learning Investment With Jason Cai 