The US stock market traded sideways as investors remain cautious ahead of the Consumer Price Index (CPI) data which is due to be released this Friday, 10 June 2022.
If the CPI data falls below expectation, it means inflation is still not under control and that may almost give the Federal Reserve reasons for more aggressive interest rate hikes in the coming months. When this happens, the market is likely to experience more pain and selling.
If CPI data meets or exceeds expectations, the market may rise because it interprets that inflation is under control and the Federal Reserves may relax on raising interest rates, which would ultimately affect the profits of companies who are borrowing for their operations.
I started to execute what I have outlined in my previous post, on how I intend to save my LEAPS portfolio, by investing a small amount of capital in new LEAPS CALL contracts to average down on the current positions that are expiring from June 2023 to Jan 2024.
Read more about the plan here:
My LEAPS Portfolio Is Not Dead Yet, It Still Has 1 to 1.5 Years To Live
Tesla LEAPS CALL (19 Jan 24)
I added 1 more Tesla LEAPS CALL to my previous positions of LEAPS that I bought when Tesla was trading at a higher price. The previous breakeven price was around USD11.8k but after the purchase on 8th June 2022, the breakeven price is USD10.3k.
I believe that over the next 1.5 years, Tesla will not keep staying at this 700+ range. When the share price has risen to 1k or more, I may offload some of the LEAPS CALL options for profits.
Facebook (Meta) LEAPS CALL (16 June 23)
I also added 2 Meta LEAPS CALL option contracts, which cost USD70 each, that expire on 16 June 2023, bringing down the average price from USD2.48k to USD1.78k. I will continue to buy using a small capital in the coming months on red days.
Microsoft LEAPS CALL (16 June 23)
I also added 3 Microsoft LEAPS CALL option contracts, which cost USD60 each, that expire on 16 June 2023, bringing down the average price from USD749 to USD634. Microsoft is the 2nd most valuable company in the world and I think they are dominant on many fronts. I have shared why I like Microsoft in this post:
Why I Think Microsoft Stock Is Cheap And Good | I Own 28 LEAPS Contracts
Concluding Thoughts
I know there are people who think that this strategy is stupid and I am just losing more money because all my LEAPS positions will eventually expire worthless. I am not ruling out this scenario but this is my decision and I answer to no one except myself. If I should lose all my 450k worth of my own money, then I will find ways to earn it back. For friends who wish to take reference, please do your own research, know the risks involved and understand your own risk tolerance.
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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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Learning Investment With Jason Cai 