Breaking Even On My Invested Capital (Assuming All 342k Worth Of LEAPS Contracts Expire Worthless)

5 months ago when I was sharing about my 618k unrealised loss, I mentioned that what is worse than accumulating this amount of loss is that there were up to 453k worth of CALL options contracts that would eventually expire worthless if the market does not recover by Jan 2023.

Reference article:
What Is Worse Than Having A Portfolio With $618,800 (Unrealized) Loss?

In the same article, I mentioned that if I were to realize that 453k loss, the profits that I have made from options trading in the past 2 years and investing over the last 10 years would not be enough to cover this huge loss. I would still be down by another 72k if I were to realize those losses.

Since then, I have realised some losses (around 91k) in August and September 2022, bringing down the total LEAPS CALL portfolio to about 342k. I have also made money from my Wheel Portfolio and the new Vertical Spread Portfolio.

As of today (4 Nov 2022), I have managed to break even on my losses even if the entire LEAPS portfolio expires worthless. It is currently 96% down.

Scenario 1: If I cut my losses and retrieve the remaining value, I would end up with $13,78k left

Scenario 2: If all the contracts expire worthless, I would end up with a breakeven gain of around $109.46.

This is absolute good news as it means that I preserve the capital that I have accumulated over the years and the gains cancel out the losses. It means that I would be in the same state as I would be if I had kept my money in the bank, which is contradictory as the main intent of investing is to get more returns instead of letting the money in the bank lose its value through inflation. However, after a turbulent year of bear market, this is the best outcome that I can wish for.

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

After accumulating more than 600k of unrealized losses on my portfolio, I wrote this article to encourage friends and investors who are also losing a lot of money to the market.
If You Are Feeling Depressed From Losing Lots Of Money In The Stock Market, Here’s An Article For You

In the 10 years of my investing journey, I have made many mistakes but also learned many lessons from these mistakes. I compiled the 10 most valuable lessons that I have learned and may they help you succeed in your investing journey.
Happy 10 Years Of Investing | 348k (Realised) Profit, 635k (Unrealized) Loss & 10 Lessons Learnt

I did these 10 side hustles while holding a full-time job, so I share them here so you can be inspired to grow your wealth through a side hustle that you enjoy.
I Did These 10 Side Hustles While Working Full Time | 10 Side Hustle Ideas To Help You Earn An Extra Income

Struggling with inflation and high cost of living? Try these 10 methods to help you save money and accumulate more savings for investments or rainy days.
10 Ways To Save Money To Help You Fight Inflation & Rising Costs Of Living

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)

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:

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 sense 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

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2 thoughts on “Breaking Even On My Invested Capital (Assuming All 342k Worth Of LEAPS Contracts Expire Worthless)

  1. nice bro. i think its good you planning to cut loss and pivot to your new strategies. cut the losers and focus on the winners ya.


    1. Thanks K for your encouraging words, yeah it was really hard with such massive loss but I think if we all don’t give up, we will one day see the light at the end of the tunnel. Hope all is well for your investment & trades 🙂


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