July was the month where the tech stocks, especially the Magnificent 7, went through a correction. A good CPI reading cause a sell-off in Mag 7 with funds being rotated into small caps stocks. The market also experienced a huge sell-off towards the month end when Tesla and Alphabet’s earnings did not meet expectations.
The Mag 7 ETF (MAGS) dropped by more than 11% in less than a month in July and my portfolio suffered as it was heavy on the big Tech, especially Nvidia and Tesla. The sudden and huge drop in share price caused me to have liquidity issue with my account as my excess liquidity dropped quickly.
However, I was able to make S$3.19k profit in July and here’s sharing all the trades that I have made. The profit would be higher if I did not close some trades at a loss to free up some liquidity for my account.
The profit/ loss summary table of my 3 main options strategies is as follows:
The details of the trades made are as follows:
The trades that went well are my CALL options on Tesla, as well as Covered CALL on AMD and Tesla.
[5 July 24] +USD1,365 Profits, 112% Return On Tesla CALL
[12 June 24] +USD1,030 Profits, Sold Tesla CALL
[24 July 24] +USD738 Profits, Closed My Tesla Covered CALL for profits
If you wish to be alerted of these trades as they happen on the same day, please follow my Patreon as I update my trades on the same day as I execute them.
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I also made some profits selling off my AMD shares at USD162 per share but I did not record as part of the trading profit/ loss as I view share sales and purchases as more like an investment rather than trading.
Concluding Thoughts
After this month’s returns, my total loss in options trading finally dropped to 4 digit figure (9.6k) and strange to say, I am thankful to be in this position, especially after cutting more than 400k of losses at one stage in my trading journey.
I Closed All My Remaining LEAPS CALL Positions At A Total Loss of SGD415K (USD306K)
Another lesson that I learnt in July is that the market can turn bad rapidly, and even the mightiest stock like Nvidia is not spare from the sell-off. So, got to take profit whenever you can and not keep thinking that the market will go up forever.
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If you are interested to find out more about my options trades and investment portfolio, I will be updating them on Patreon (on the same day I made the trades), so do follow me there if you need some reference or inspiration.
*** FINANCE BOOKS ***
If you are new to investing, options trading or personal finance and would like to get yourself educated about the fundamentals, you may want to consider these very popular and highly recommended books: One Up On Wall Street, The Psychology of Money, Rich Dad Poor Dad,
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