Monday, March 26, 2018

OPPS, I forgot about my $LMT bull put spread

2- Bull put spread on $LMT $145/$135 strikes 23MAR18: premium collected $251 on $2000 margin risk

After I opened $LMT bull put spread on Feb 26, 2018, $LMT fell below my strikes and flattered in between.  I didn't pay much attention to it but I knew I had to roll out my spread in order to save my spread.  That very Friday, I totally forgot about $LMT as I went to work for a few hours then took a couple hours off mid-morning to watch a free movie Wonder at the theaters.  By the time, I got back to work, my heart dropped a little bit as I realized that I didn't roll my spread!  

$LMT was actually trading below my long strike at $135.  Lo and behold, end of day, it closed just above $335 meaning my long strike is worthless and I got assigned my short puts for 200 shares @ $345.  

Today, I am on margin for $69k and I need to lower my margin basis.  I sold a couple of calls against $LMT to hopefully fund my financing cost and to get out of the stock at a profit eventually.

1- sold covered call on $LMT $347.50 strike 29MAR18: premium collected $190
1- sold covered call on $LMT $335.00 strike 20APR18: premium collected $217

I will keep on selling one weekly call, until it gets called away to reduce my margin load.  




Monday, February 26, 2018

Sucessful $NVDA Bull Put Spread Roll

Opened on Nov 27th, 10 Bull Put Spread $207.50/$202.50 set to expire on Dec 1st when $NVDA was trading at $214 per share.  $NVDA took a nose dive in the next few days and closed at $198 per share on Dec 1st.

First Trade BPS $207.50/$202.50:  +$260 premium collected
Assigned shares of NVDA on Dec 1st:  -$5000 capital loss

On Dec 1st, 10 Bull Put Spread $190/$175 wider spread set to expire Mar 16, 2018. 

Second Trade BPS $190/$175:  +$5600 premium collected

Today, I closed $NVDA for 5c debit as $NVDA closed at $247 per share.  I could have waited till Mar 16th for it to expire worthless but after what happened last time, I decided to close early to lessen the burden on my margin as this BPS took 15000 instead of the 5000 margin requirement.  From this trade series, I profited $860.



NEW TRADE FOR FEB 26, 2018

Feb 26, 2018
2- Bull put spread on $LMT $145/$135 strikes 23MAR18: premium collected $251 on $2000 margin risk

Tuesday, February 20, 2018

Trade Summary

I didn't make a single trade in January 2018.  My short puts on $WMT finally expired worthless after a bull put spread gone bad back in June 2015.  

My $AAPL cover call @ 175 (+$770 premium collected) also expired worthless on Feb 16, 2018 on a roll @ 165 (-$629.00 premium lost) on Nov 10, 2017.  I made $141 from this trade.  Original premium collected was $97.

Still have 10-Bull PUT spread on $NVDA strike @ $190/$175, expiry Mar 16, 2018.  This was a roll from gone bad, but if NVDA stays above $190, I stand to make $650.  



NEW TRADES FOR FEBRUARY 2018

Feb 14, 2018
5- Bull put spread on $FB $165/$160 strikes 16MAR18: premium collected $275 on $2500 risk

Feb 20, 2018
1- Cover call on $AAPL $182.50 strike 16MAR18:  premium collected $112.00
5- Bull put spread on $V $115/$110 strikes 23MAR18:  premium collected $190 on $2500 risk
1- Short put on $TD.TO $66 strike 20APR18: premium collected $53 on $6600 risk
1- Short put on $TD.TO $68 strike 20APR18: premium collected $75 on $6800 risk

I paid $12.43 in commissions for USD options and $3 in commission for CAD options for the trades mentioned above.



Thursday, February 15, 2018

Volatility of the Stock Markets

I cringed at the market drop last couple weeks.  My portfolio was climbing steadily till about Jan 22, 2018.  Investors/Traders were taking profits all time highs especially in $AAPL just before their earnings call on Feb 1st.  Each day, my portfolio would drop a few thousand here and there.  I started to doubt myself and thought I should have sold this and that at all time highs to lock in my gains.  When said and done, all this is paper profits until I sell my stocks.  Greed tends to get the better of me 90% of the time!

Some traders/investors would hit the sell button to stop the impending losses for the forthcoming days, but for me, I completely ignored the market.  I am happy to see the recovery in the last three days.  However, I need to lessen my margin risk and lock in my profits before we have another market drop.  Who knows what is in store for the next few months? 


Friday, January 12, 2018

Update on total Portfolio as of Jan 1, 2018

As another year rolls by, it's time for another update on my total Portfolio as of January 1, 2018.  I have not been actively trading within my Interactive Brokers non-registered account as I have made a few blunders in my option plays back in June 2017, but I have recovered and I only have three current open options at the moment which is likely to expire in my favor except for $AAPL at the moment:

1)  2-Short put on $WMT strike @ $70, expiry Jan 19, 2018
2)  1-Cover call on $AAPL strike @ $175, expiry Feb 16, 2018
3)  10-Bull PUT spread on $NVDA strike @ $190/$175, expiry Mar 16, 2018

Even though, I made some untimely trades, I am able to recover from my mistakes such as $NVDA is a roll from @ $207.50/$202.50 that I lost $5k just a month ago.  Good thing about options is that I have time to watch them decay till expiry.  Hoping for good earnings for $AAPL and $NVDA!!  


IB NON-REGQT TFSAQT RRSPTOTAL
Jan 2016105,434.0153,435.2071,624.34230,493.55
Deposit/Withdraw0.000.006,500.00
Jan 2017116,132.9054,725.7194,716.14265,574.75
Gain/Loss10.15%2.42%23.17%15.22%
Deposit/Withdraw10,500.000.000.00
Jan 2018143,281.0070,957.18103,652.70317,890.88
Gain/Loss14.34%29.66%9.44%19.70%

Monday, June 19, 2017

I f'd up my portfolio

June 9th, the technology sector sold off big time.  I was sitting at a comfortable distance from my out of the money (OTM) bull put spreads on $AAPL that very morning till the shits hit the fan.  I watch in horror as my OTM bull put spreads became in-the-money (ITM).  As the day wore on, it became worse and worse!! 
 
OMG, I hate APPLE!!  Seriously, every time I play with them, I get burnt bad.  I too had some Facebook bull put spreads... those gave me a run for my money, but luckily, $FB landed above my strike price.

Greed got the better of me.  I could have closed my puts for a small profit that morning instead I let them run its course.  During that day it traded as high as $155.19 and as low as $146.02.  $AAPL closed at $148.98 per share which was below my strike price.  

I was confused as IB liquidated half of my puts for $AAPL just an hour before close.  So I froze and didn't close my outstanding remaining puts.  Tada, I now own 500 shares @ $150 due to an assignment for my bull put spread that went very wrong. 

The following week, I had to make some adjustments to my overly extended option positions.  Now, I'm on a recovery mode.  $AAPL hasn't fully recovered unlike $FB.  I'm so puzzled why $FB was only hit a little while $AAPL got slammed.  


Luckily I have tons of margin room... when $AAPL goes up to $150, I'll be selling some covered calls to recoup my losses.  I'm so impatient when it comes to holding stocks that are down, but right now, I'll just sit on my hands and weep in my paper losses.

Thursday, June 8, 2017

New Car

When I landed my second job in summer of 2006, I needed (ok, wanted) a car to get to work.  This would give me the freedom to go anywhere I want on a whim, instead of waiting around for a bus.  It would be a 30 minute drive from where I lived versus another hour plus commute by transit.  I've done the hour long transit each way for the past three years at my previous job, my days were so long from 8am-6pm!   

So I was ready to put my foot to the metal.  Back then, I relied on my dad to help me look for a used car.  My budget was moderate $5k-10k as I have enough in my savings to pay it off outright.  My dad didn't know how to use a computer and he would use the classified ad in the local newspaper.  He got fed up looking through the ads and calling potential sellers, so he's like maybe it's better if we go to the dealership to buy a new car.  He suggested a Corolla to me, I was adamant about not buying a Corolla due its uncool reputation.  

We went to a Honda dealership, I set my eyes on Honda Civic Coupe and fell in love, well not literally.  It was a new redesign 2006, it looked slick and sporty.  The price tag was around $20k.  We took it for a test drive and tried to negotiate a lower price, but they wouldn't budge much.  Settled on getting an undercoat and my dad wanted to upgrade for a nice set of rims that set me back another $900.  I didn't get the higher package of air conditioning and keyless entry as I was already spending way more than I can afford.

I got a personal loan from my dad and ended up financing my NEW CAR.  I paid off my dad within a year and financed the rest within 3 years at the rate of 5.9% ouch.  All the while, I started making $23k at my new job.  But luckily, I had steady raises thereafter.  When I paid everything off, I was able to save up more and put money into the stock market. 

Last May, I sold my 2006 Civic Coupe for $5,500 privately after a decade of usage.  It was in pretty good shape and no accidents with 140,000km.  I was pretty relieved that I managed to sell it for that price considering it doesn't have a/c and keyless which is in most cars these days.  By being cheap, I sweated those hot days in the summer and the inconvenience of not having a keyless entry.  My driver side door key lock was busted for over a year, so I used the passenger side to unlock my door each time.  What a pain in the ass.  Finally, I decided to fixed it just before selling it.  It was a $300 expense.  In hindsight, I should have gotten it fixed right away for convenience sake.  

Looking back, I kind of regretted buying that NEW CAR.  I poured a lot of money into maintaining and insuring in addition to gas.  Having a car is a big expense, that first year of ownership I spent $4k on just insurance and gas!  Over the years, my insurance went down as I regained my road star status and switched to another job that was closer to home in summer of 2012.  I did make good use out of my Civic for the past decade until I had to upgrade to a larger vehicle due to my little one coming.  I vowed to not buy another NEW CAR for my next purchase.

However, I fell right into the same trap again!  Upgrading to a larger vehicle, I was looking for a newer SUV or older sedan.  Most of the SUVs were going for around $20k still with decent mileage on it already.  So I looked into a used 2009 Accord for $12k at a Toyota dealership, but the stroller I bought was a little too bulky for the trunk space.  So we looked around at the dealership and I ended up test driving the new redesigned 2016 RAV4.  I liked the new look and was sold again!  The salesperson was really nice and wanted to make a deal that day.  But my husband said no and that we need to think about it and walked away.

Toyota had a 0% financing on new cars with no down payment on a 3 year term.  After weighing in all our factors versus paying around $15-20k outright for a used SUV, we decided to take up on Toyota's 0% financing option!  My husband emailed all the local dealerships asking for their lowest price as we were ready to make our purchase.  We got back several replies one lower after another.  We used those emails as our leverage to pick the closest dealership to where we lived and they able to offer us the lowest price.  

We ended up paying just over $28k for our brand new 2016 RAV4 LE Upgrade.  Yes, this time around I am not cheaping out on the upgrades!  Welcome to the new age, until next time.  Who knows what new technology will be in our future vehicles. 

Yes, I have spent a lot of money by owning new vehicles.  They do depreciate a lot in the first few years of ownership.  Who am I to judge someone who borrows money to buy a vehicle?  Sometimes,  I do wonder if it is better to use that money for something else...

Sometimes in life, you just have to enjoy the perks of the money you earn.  If you can afford it, just do it.  You can't bring money to your grave.  Can't wait to pay off the remaining balance left on my 3 year term, so I can free up that cash flow towards other expenses in life has to bring.