Another trading month has ended and I thought it would be useful to share my current portfolio and the earnings that I have made from options trading for the month of April 2022.
April has traditionally been a good month for the stock market as Q1 results help to boost share prices which in turn lift up the market. However, as we know that 2022 is always going to be a different year, with the Federal Reserves tightening monetary policy to curb inflation and the ongoing war in Ukraine and China Covid lockdowns adding more woes and uncertainties to the global supply chain and the stock market.
As a result, the stock market (using S&P 500 as an indicator) falls close to 9% in the month of April. There is no rally like what we have seen in March 2022 and some companies such as Netflix, and Amazon, have seen their share prices crash after bad earning calls.
My Current Portfolio (Shares That I Own)
The below table shows the shares that I own and the quantity of each stock. Every stock is at least 100 shares and it serves 2 purposes, one is for long-term investment, and the second purpose is for short-term options trading (selling covered CALL contracts).
The bought price is my purchase price, which is the strike price of my previous PUT contract when it was exercised. With the premium earned from the PUT contract and subsequent premiums earned from selling CALL using the shares, I have managed to lower the breakeven price for each stock.
I also own 40 Alibaba stocks which I purchased in another trading account, apart from my Interactive Brokers account. As I have bought those BABA stocks in Jan 2021, way before they crash (due to a series of crackdowns and delist fears), my breakeven price was $264.63
Open Options Contracts (Selling CALL & PUT)
My open option contracts (as of 30th April 2022) are listed below. These options contracts are part of my Wheel Strategy Portfolio that is helping me generate monthly income through selling covered CALL and cash-secured PUT.
Open Options Contracts (Buying LEAPS CALL)
The Wheel Strategy Portfolio makes up slightly more than 50% of my total capital. The remaining capital is used to buy LEAPS CALL options, as part of my LEAPS Strategy Portfolio. The unfortunate thing is that the Nasdaq has corrected so much during the last 5 months that most of my LEAPS positions are stuck.
I am still looking for opportunities to clear the LEAPS contracts that are expiring soonest (in the orange box). I have tried to average down in recent weeks to try to stand a higher chance of breaking even or minimizing loss.
Profit/ Loss Table
In the month of April, my profits and losses are summarized in the table below.
(Colour Code: Light Red: Cash-secured PUT, Yellow: Covered CALL, Blue: Open Contracts)
I just realised that I did not make any loss in April and most of my gains come from selling covered CALL as the market kept dropping.
I tried this new strategy of selling covered CALL to help me generate a higher return, which includes earmomg USD1,400 in a single day from my Tesla trade.
I Discovered A Way To Generate Higher Returns From Selling Covered CALL For Low IV Stocks Like Apple
My biggest winnings in April comes from Tesla, where I have a CALL and PUT contract currently. When Tesla’s share price rises, I roll my PUT contracts:
Why I Choose To Roll My PUT Option Contract When Share Price Rises
When Tesla’s share price falls, I roll my CALL contracts:
Why I Choose To Roll My CALL Option Contract When Share Price Falls
SGD23,288.85 Gains In April 2022
My total gains increased by SGD23,288.85 (USD17,251) after the end of April 2022. This increase includes future months’ premiums as I am selling longer-dated covered CALL (based on my new strategy) for a higher delta, which helps me get more profits if share prices drop.
The percentage yield from my overall capital for the month of April is 2.51%. However, the returns come mainly from my Wheel Strategy Portfolio. If based on the capital allocated in the Wheel Portfolio, then my percentage yield would be 4.75%.
I hope this sharing has been useful and if there is further info that you need as reference, feel free to let me know in the comments.
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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 on executing these trades:
MY TRADES
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?
Also, check out my trading strategies in different market conditions, whether it is bullish, bearish or volatile:
How Not To Lose Money In Trading? | My Trading Strategies For Bullish, Bearish And Volatile Market
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)
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)
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You must be trading in a regular brokerage account. Some of us are in traditional IRAs and 401K IRAs. Mine is a 401K. I understand that I cannot sell cash secured Puts (which rules out the wheel option). But I do trade almost exclusively in stocks against which I sell covered calls. Thanks for posting your list. You’re a bit more of a gambler than I. One trade that I’m eyeing is to buy 5 shares of AMZN. I understand they’re splitting twenty to one soon. I would love to get AMZN at 2400.
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Hey Sam, thanks for dropping by and taking the time to read the post. Oh, I am using Interactive Brokers brokerage and trading with cash instead of retirement funds. AMZN is trading at a very attractive price now. I have a LEAPS CALL expiring on Jan 23 and I do hope the stock price recovers when the stock split happens in June. 5 shares of AMZN is a great idea for selling covered CALL after the split and also to keep for long-term growth.
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