December is a good month for the US stock market, due to seasonality where stocks generally rise towards the end of the year, with the famous Santa Claus rally indicating a strong uptrend for the second half of December.
Another reason that boosted investors’ confidence was the Federal Reserve’s signaling in December’s FOMC meeting that they are likely to start cutting interest rates in 2024. The aggressive rate hikes in 2022 started the bear market and now that the rate cuts are coming, the market is pricing in this good news ahead of time.
It was also a good month for me in options trading as the 2 strategies that I used in a bullish market, SOP Strategy and BULL PUT Spread, worked wonderfully to help me generate S$6,840 in profits in December. In this article, I will share the trades that may be a useful reference for you.
The below table is a summary of trades using SOP Strategy:
And closing another trade using BULL PUT Spread:
Starting this month, I have also shared my trades on my Patreon page on the same day that I execute them, so do follow me there if you need some reference on what to trade. Some of my bigger wins this month include:
+ USD850 Profits on Coinbase
+ USD474 Profits on Meta (BULL PUT Spread)
+ USD300 Profits on AMD
+ USD374 Profits on Coinbase
+ USD323 Profits on Amazon
For full details on all my trades, this month and previous months, my investment portfolio, and all my opened options positions, you can find them in the spreadsheet that I use to track all my investments and trades.
Concluding Thoughts
Trading in an uptrend market is relatively easier than trading in a choppy and volatile market, even buying stocks by themselves can give good returns. My returns for this month could be much higher if I bought CALL options instead of selling PUT. However, by selling PUT, I give myself a safety margin, just in case the tide turns and I am stuck on the options that I bought, with time decay eating the premium away day by day. Selling PUT allows me to profit even if the market stays stagnant for the duration of the contract, which is part of my risk management plan to protect the downside, in case it happens unexpectedly.
With the review of this month’s earnings, that concludes the whole trading year for 2023 and I will be doing a review of my trading year in a future post, to share what went wrong and what went right for me, to provide learning lessons for myself and everyone who is reading this blog.
I am excited about a brand new start in 2024, and hopefully, I can continue to keep up the good work for the last few months and generate a steady stream of monthly sideline income in the new year. I wish everyone a great year ahead in 2024 and may you be blessed with good health, happiness, and abundance.
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