In my last update on 8 Oct 22, I shared that my SGD342k (USD250k) LEAPS CALL portfolio was down by 95.14%. While the NASDAQ has rebounded a little in the month of November, my overall loss has increased to 97.1% as the time decay eats into those option contracts.
My LEAPS Portfolio Update On 8 Oct 2022 (95.14% Of $342.6K Down)
I first bought all these LEAPS CALL contracts back in 2021, with most of them expiring 1.5 years to 2 years later. Back then, I thought that I was protected by the long expiration date and that there would be ample time for the stock market to recover. I was so wrong because time only gave the stock market more room to fall further and created new lows. After one full year of bear market in 2022, my CALL options are hit by both time decay (loss of time value in the contract) as well as falling stock price of once-invincible sure-win stocks like Google, Facebook (Meta), Nvidia and AMD.
The only consolation that I get is that if I were to lose 100% on this portfolio, I am still able to break even and am better off than where I was when I started investing 10 years ago in 2012 (see reference article below). However, this has not factored in the paper loss for my stock portfolio, though I do have holding power over them, provided they do not go bankrupt or permanently stay low when the market recovers.
Breaking Even On My Invested Capital (Assuming All 342k Worth Of LEAPS Contracts Expire Worthless)
It has been a rollercoster ride for me in this 2 years options journey (started in Feb 2021). I win big in 2021 (over 200k), only to lose even bigger in 2022. I hope by sharing all my beginner mistakes and the lessons learnt, transparently and openly, can help you in your investing/ trading journey. I hope you do not have to experience all the pain of loss that I went through but if you do, I feel sorry for your loss but know that you are not alone in this journey. As long as we do not give up, I believe the sun will rise again for us one day. All the best and take care!
*** 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
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
2 thoughts on “My LEAPS Portfolio Update On 10 Dec 2022 (97.08% Of $343.3K Down)”
Have you considered cutting loss and redeploying the balance 10K for other trades?
Hi Koh, yes I do, I am actually waiting for the outcome of the CPI release and FOMC meeting before deciding when to exit all these positions.