March 2022 has been a pretty good month for most investors as the S&P500, led by the tech sector, rebounded strongly after the FOMC meeting. Tesla, based on March performance, has gained 22.47%.
If you would like to track the performance of the index of any stocks, like the above map, do check out this post:
S&P 500 Stock Performance (Map) At A Glance | Useful Website For Investors/ Traders
I prepared for the rally by closing all my covered call positions before the FOMC meeting on 15 and 16 March 2022. As you can see from the profit/ loss table below, most of my covered call positions were closed between 11 to 14 March 2022.
When the rally happened, I focused on rolling my cash-secured PUT positions on Tesla and Nvidia. Based on this strategy that I shared previously, I have had quite a good returns from rolling Tesla PUT contracts:
Why I Choose To Roll My PUT Option Contract When Share Price Rises
I did not open (sell) new covered call positions immediately when the rally started as premiums will go higher if share prices continue to rise, which is not ideal for an options seller. Instead, I waited until the share prices have stabilise before initiating new covered call positions in Tesla and Nvidia.
The basic principle of making a profit from the standpoint of an option contract seller is to sell high and later buy back at a much lower price or let the contract expire worthless, thus securing max profit (full premium price).
LEAPS Portfolio
March is also the month that I finally have some activities in my LEAPS portfolio, which makes up 46% of my portfolio. I was hoping for a rally that can help me clear as many LEAPS positions as possible so that I can free up the capital and not make any loss on those positions.
My Alibaba PUT positions helped me make some money as Alibaba plunged to near USD75 before rebounding back to its current level. I took profits and initiate new PUT positions but the rally happened and I sold these new PUT positions at a loss.
My high-risk move in averaging down and eventually accumulating a total of 40 Tesla CALL contracts (expiring on Sept 22) paid off when Tesla’s stock price rebounded. So, I sold all 40 call positions for a profit of USD8,000.
SGD$26,088 (USD19,324) Increase In Profits For MARCH 2022
Based on the above trades, the increase in profits for the month of March is SGD$26,088.70 or USD19,324. My total capital increased as I sold off all my SG bank stocks in late Feb 22 and redeployed the capital into selling OTM PUT on Nvidia and Tesla.
Percentage Yield
The percentage return I get from trading options in March 2022 is 2.85% and that is the percentage return off my total capital of 916.9k. My Wheel portfolio returns 5.27% while my LEAPS portfolio returns 2.62%.
Concluding Thoughts
Hopefully, I can still keep up with these positive returns every month and I will eventually grow a stable sideline monthly income that can replace the income that my day job is providing and helped me towards achieving financial freedom.
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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 