In this post, I wish to share my capital allocation for my investment and trading portfolio. It serves as a good record and reference for me as I review my portfolio again in future. Hopefully, the strategies and philosophies that I share on how I will manage this capital will benefit you as well.
Summary Table of Total Capital Allocation
The below table shows my capital allocation for the various asset classes:
Most of my capital (70%) are in US stocks, of which 61% are unsellable despite the paper gain because they are locked up in Covered CALL contracts, where I sold at the worst possible time at very low strike prices before the bottom of the bear market in 2023. Therefore, the paper gains that I have are not enough to cover the losses from closing the options contracts.
I have 7.2% of my portfolio on riskier options contracts and this is something I have learnt over the years; not to YOLO a big bulk of my capital (like what I did in 2022 with more than 50% allocation into LEAPS CALL) into CALL options that has time expiry.
The rest of my capital are parked in safe asset class such as the SG Saving Bonds (8.1%) and cash (13.8%) in my IBRR account earing more than 4% interest per annum.
I share more about this source of passive income that comes from earning interest off the cash balance in my IBKR account in this article:
My Safety Net If I Lose My Job | Sharing My 3 Sources Of Incomes Without Holding A Second Job
The details of each asset class, such as the strike prices, premium received/ paid for all my opened options contracts (Covered CALL, Vertical Spreads, CALL positions), bond info & interest rates, which stocks I own and the average share price and my past trade records can be found on my investment & trading spreadsheet on my Patreon page.
Click to access my latest “Investment & Trading Portfolio” spreadsheet
Options Trading Profit/ Loss Summary Table
The below table is a summary of the monthly returns that I get from options trading since I started options trading in Feb 2021.
It was a roller coaster ride as I once had $287k worth of realised profits, only to lose it all in the bear market of 2022, where my $400k+ portfolio got wiped out by theta decay and depressed stock prices. I was at one stage down $56k, before I gradually gain it all and broke even in November 2024.
Read more here: A Milestone Achieved! (Breakeven On Options Trading Loss) | Recap Of My 4-Year Options Trading Journey
Investment + Trading Profit/ Loss Summary Table
The below table shows the investment profits that I made over the past 13 years and together with the earnings from options trading, they made up my total gain over the past 13 years.
Concluding Thoughts
Options trading is a steep learning curve which in my humble opinion is not suitable for newbies or conservative investors. Moving forward, I intend to trade less and invest more in 2025, because the years ahead may be very volatile and there is higher risk when options trading is involved.
I intend to increase my capital allocation into stocks, while keeping the capital for options trading to be no more than 10% of the total portfolio. My options contracts are not short term but at least 6 months out, to the maximum of 2 years plus.
If you are facing setbacks in investing/ trading and eagerly waiting for your first pot of gold, I hope my (comeback) experience can be useful to you. I wish you all the best in your investing and trading journey, may you find the right strategy that can continually grow your wealth.
*** SEE MY TRADES & PORTFOLIO ON PATREON ***
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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*** FREE BEGINNER GUIDE TO OPTIONS TRADING ***
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
*** FREE MOTIVATIONAL BOOK ***
If earning more money from your investment does not excite you anymore, you may be seeking a purpose that brings fulfillment and meaning in life. I have written a motivational book that may be useful to you in some ways. You can also download a free copy here:
https://learninginvestmentwithjasoncai.com/finding-the-magical-realm-of-happiness-motivational-book
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