The stock market performed relatively well in the month of November and there were a number of rallies, especially after the release of the October CPI reading and a dovish speech from Fed Chairman Jerome Powell about not raising rates too aggressively until it crashes the economy.
I was initially doing alright for the month of November until a couple of bad trades wiped out all of my profits for November.
My Vertical Spreads were generating good returns:
Read more here:
My 390.91% Return On Positive CPI Reading Trade (Bull PUT Spread On Apple)
My 390.32% 2-Day Return On FOMC Meeting Trade (Bear CALL Spread On QQQ)
The short trades on buying and selling CALL and PUT gave some decent returns as well.
The highest gains came from the Wheel Portfolio, mainly from returns of Covered CALL contracts due to the continuous fall in share price for Tesla stock. Selling Covered CALL is bearish so when share price drops, the premium becomes cheaper to buy back and close the contracts.
As one stage in November, I was at one stage up more than 9k of nett gain in total options profits.
However, an early assignment on my Bear CALL trades on Apple made me end up with Apple shares and Apple PUT. I predicted the wrong trend thinking that Apple’s share price will continue to fall and ended up selling my Apple shares and holding my Apple PUTS. But Apple went up instead and I had to sell those PUT contracts at a loss. After I sold the PUT contracts, Apple’s share price crashed, which would have allowed me to make a gain instead of a loss, if I had held on for just one more day.
I share more in this article:
My Vertical Spread Disaster, How Max Loss USD117 Became USD3,036 Loss | What To Do (& Not To Do) When One Leg Of Vertical Spread Gets Assigned
The loss from selling Apple PUT wiped out half of my profits for November 2022. The other half of November’s profits was wiped out when the Apple CALL contracts that I bought lost half their value when Apple kept falling in share price too. I sold them all at a loss when I anticipated that there would be a bigger selloff coming up.
More details in this article:
I had another early assignment for my remaining Apple spread contracts but this time round, I managed to guess the right trend and made a profit off them. This allowed me to end the month in green instead of red.
More info here:
History Repeats! With Another Early Assignment Of Vertical Spread But I Made A Profit Of USD2.25k | What Went Right?
The total earnings from options increased by $2,596.36 for the month of November.
Concluding Thoughts
It is agonizing to watch those almost 10k profit reduce to just 2.5k but I think I learn alot from all these mistakes, especially when it comes to dealing with early assignment and not to panic sell the stocks or the options contract. Also, profits are profits and having a little profit is better than none or ending the month on a loss. All these lessons learnt will help make me a better trader that will benefit me in the longer run. I hope that by sharing these experiences and lessons learnt, it will help you in some ways too. All the best!
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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!
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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:
MY 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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