That is me, recently. Not sure what happen but I hope it isn't anything huge.
Portfolio: 9.35%
ES3 (Straits Times Index Fund): 2.34%
S&P (S&P 500 Index): 1.77%
2800 (Tracker Fund Index): 4.32%
Major Transactions:
(1) Bought 1000 shares of Anta Sports to sell covered calls on. I am moderately bullish on Anta and Intrinsic Volatility for Anta is making the price of these calls worth it. Buying stock and selling calls of overpriced assets don't make sense to me. Yes, volatile, but highly overpriced stocks, like Nvidia and Tesla in the past, gives a option writer eye watering gains. But attention should be paid to risk-- I don't want to hold these stocks at current prices.
Nvidia, Current price: 129.84 Strike 130. Call option price 8.3. Expires in 19 days.
Tesla, Current Price: 361.62. Strike 365. Call option price 15.6. Expires in 19 days.
Anta Sports, Current Price: 86. Strike 87.5. Call option price: 3. Expire in 17 days (27-Feb)
Alibaba (HK), Current Price: 100. Strike 100. Call option price: 4.47. Expire in 17 days.
The yield respectively:
Nvda: 6.38%
Tesla: 4.27%
Anta: 3.43%
Alibaba (HK): 4.47%
The idea that rewards should commensurate with risk is seldom violated. As of now, I feel that Anta is moderately priced for its financials.
(2) Sold 1000 shares worth of Anta in put options and bought 1000 shares of Anta in call options, expiring one month.
This is what I would call "hand itch" trade. This trade is known as a "synthetic." Very little amount of money was put up for this trade, which would expire in 2 months. Realistically, due to theta decay, I would start selling a month or so before expiry.
Stocks: Since Anta Sports cost 85 HKD, 1000 shares of Anta cost 85000 HKD, or approx 14800 SGD
Options: Selling put (strike 85) gave me 4.62 per contract, and cost 4.95 (call options strike 90) to buy those call options. Each option contract is 200 shares, so I need 5 contracts= 5 * 200 * (4.95-4.62)= 330 HKD, or approx 60++ sgd.
Obviously that would mean Anta has to go close to 95 HKD for my options to start making money. Next month is earnings month, so it is worth a punt.
.jpg)
