Ever since the disastrous month of Sept 23 when I incurred a loss of S$28.1k, I have achieved positive returns for the past 8 months (from Oct 23 to May 24). My net total loss in options trading has also reduced from -$56k in Sept 23 to -17.1k in May 24.
Capital
The below table shows my current total capital allocation.
The bulk of my capital ($540k or 71.7%) is in owning US stocks, of which $359k worth of shares is used for selling Covered CALL options. However, this is the worst performing part of my portfolio as most of the Covered CALL positions have been stuck since early 2023 when I sold those Covered CALL before the market bottomed.
As the share price recovered and shot up, I was stuck in many of my Covered CALL positions as it was too expensive to buy the CALL contracts back (to close them) when the premium to be paid has become many times the premium originally received.
Returns
While the Covered CALL portfolio was not making good returns, the Vertical Spread and BUY/ SELL CALL/ PUT portfolios are giving good returns on capital.
Vertical Spread Portfolio (Returns)
Buy/ SELL CALL/ PUT Portfolio (Returns)
Trade Details
Winning Strategies & Trades
My winning strategy for May has to be the ITM BULL CALL Spread Strategy that worked perfectly with the hottest stock in the US market, Nvidia
Read more about the strategy here:
Trying Out A New Options Strategy | If Nvidia Closes Above USD820 On 26 April 24, I Earn USD3.2k
The best trades are as follows:
[22 May 24] +USD 1290 Profits, Closed All My Nvidia Bull CALL Spread Positions
[21 May 24] +USD416 Profits, Closed 2 More Nvidia BCS Contracts
[20 May 24] +USD380 Profits, Taking Profits on 2 x Nvidia Spread Contracts
I share my trades on the same day I execute them on my Patreon page, you can follow me there if you wish to see my trades for reference purposes.
Click here to access my Patreon page
Concluding Thoughts
I am thankful for another good month in options trading. It has been a tough ride but hugely rewarding in many ways, in terms of education and gaining experience in options trading.
The first year (2021) was glorious with big wins, which was then followed by huge loss in the 2nd year (2022) when the US stock market experienced a bear market. The most awful experience happened in the 3rd year (2023) of my options trading journey where I was still losing when everyone was starting to win as the bull market was reignited. Thankfully, I switched my strategy from being bearish at the start of the year to being bullish in the 2nd half of the year and managed to reduce the loss.
Thank you to everyone who has been with me in this journey and supporting me all these while. The journey would be so much lonelier with your company. I hope my sharing has been useful to you in some ways, not just the winning trades but also how to deal with the huge losses.
*** SEE MY TRADES & PORTFOLIO ON PATREON ***
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