I bought more LEAPS CALL (expiring Sept 2023 and Jan 2024) to average down on my previous positions as I believe that inflation will be under control in the latter half of 2022 and the stock market will rebound when that happens.
The worse-than-expected CPI data released on 13 July 22 did not crash the market as feared initially. I believe it was for a few reasons, one reason was that this was already priced in, and the second reason could be that investors already knew the June CPI data was a lagging indicator and that inflation could have peaked in June. The 3rd reason could be that stock prices are already so low that investors are not willing to sell unless something catastrophic happens to the company.
While times ahead are going to be volatile, I have used small capital to slowly buy into some LEAPS positions that have dropped significantly over the last 6 months. This allows me to take a more cautious approach just in case the stock market continues to correct in the coming months,
The details of my trades over 14 & 15 July are as follow:
Most contracts are worth tens of dollars as compared to the hundred of dollars that they were worthed last year (2021). With the recent purchases, I managed to average down some of the premiums that I paid for the contracts last year. By buying LEAPS CALL contracts that are expiring in Sept 2023 and Jan 2024, I am giving myself and the options contracts more time to wait for the stock market to recover.
More info about this strategy in my previous post:
My LEAPS Portfolio Is Not Dead Yet, It Still Has 1 to 1.5 Years To Live
With the new recently purchased LEAPS CALL contracts, my total invested capital in the LEAPS portfolio has increased from 449k to 465k. The risk is that if the market continues to stay this way or fall further all the way till 2024, then the extra 16k that I have invested into this portfolio over the last one month will be gone. This is the risk that I am willing to take in order to save this portfolio and get back my previous capital.
I hope you find this sharing useful and I wish you all the best in your investing/ trading journey.
*** FREE RESOURCES ***
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)
Follow me on your favorite social media platforms, Facebook, LinkedIn, or Twitter, to get notified of my latest blog posts. Or join our investing/ trading community at Telegram to exchange ideas or ask questions relating to investing/ trading.
Learning Investment With Jason Cai 