Short report to cover options expiry in two of my other portfolios.
In a week where S&P 500 did touch an all time high though it did close lower but rose 0.35% on the week, my other portfolio dropped 3.2%, the same as my pension portfolio. The drags were marijuana stocks, options trades on Fiverr and AirBNB and a few earnings shocks in oil services. Example Helmerich & Payne (HP) down 25.7% and Cronos Group (CRON) down 21%
Big movers of the week were NVIDIA (NVDA) (+8.5%) and Victoria's Secret (VSCO) (+7.7%)
Turkey Cuts Rates
Turkish Central Bank cut the repo rate by 1 percentage point under pressure from President Erdogan to reduce borrowing costs.
With high inflation already markets hated that and smacked the Turkish lira by 15%. Why do I care? I have a trade open predicated on GDP growing - see naked puts section below.
No stock purchases
ENGIE SA (ENGI.PA): French Utility. Assigned on a covered call for 2.5% blended loss since June/August 2021. Income trades (covered call and naked put) for this month covered the capital loss.
Capital Product Partners LP (CPLP): Oil Shipping. Assigned on a covered call for 22.8% blended profit since August/September 2021.
Livent Corporation (LTHM): Lithium. Assigned on a covered call for 15.5% profit since October 2021
iShares 20+ Year Treasury Bond ETF (TLT): US Treasuries. Price range for the week was a low of $144.85 and a high of $148.60 and a close of $148.36. In this portfolio, I was long two put contracts (147 and 143) and short a matching number of contracts at 142 strike. For some of the week, the 147 strike was in-the-money. This turned into an expensive loss - time to find another way to trade rising interest rates - buy bank stocks or longer dated options on bank stocks perhaps.
Celer Network (CELRBTC): One rising 10 portfolio addition to report from the weekend (Nov 21). Price has broken the downtrend and there is divergence on MACD.
Across two portfolios 36 covered calls written (US 30 Europe 6) of which 4 assigned (US 3 Europe 1) and 13 naked puts written (US 12 Europe 1) and none assigned
Naked Puts
Two sold puts forming part of call spread risk reversals expired.
Citigroup Inc (C): US Bank. With price closing at $66.34, strike 60 sold put expired. This was part of January 2022 70/80/62.5 call spread risk reversal.
Quick update of the chart shows that the trade did move in-the-money a few weeks after trade time but has since lost momentum. With the expiry of the sold put (62.5), the trade is currently profitable. AS it happens I had sold naked puts as an income trade this month too - that trade means the net premium of $0.45 is now fully funded and the call spread is a free trade.
Price has respected a level around $65 - I will look to sell another naked put at this level. I will also explore putting in another call spread with a longer expiry looking for higher interest rates to push bank prices.
iShares MSCI Turkey ETF (TUR): Turkey Index. With price closing at $21.09, strike 20 sold put expired. This was part of January 2022 24/30/20 call spread risk reversal with the sold put fully funding the call spread. Given the move in interest rates referred to in news section above, the foundations of this trade have changed
A quick review of the chart shows that price has only touched the bought call (24) a few times and never pushed through it. I somehow doubt we will see the blue arrow price scenario playing out = maybe time to cut bait. The smart trade management step will be to sell the bought call (24) and take my chances on the trade never going above the sold call (30) before expiry. There is a solid support resistance level to the left (around $17) - selling a naked put at that level is also an idea.
These two trades demonstrate why I tend to find a shorter expiry date for the sold puts compared to the call spreads - it reduces the risk in the trade.
None
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers. Crypto tickers come from TradingView
Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices. They have a great [Black Friday Deal]
Trading: Binance offers a wide range of coins to trade, tight spreads and low fees if you use BNB to pay https://mymark.mx/Binance
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November 19, 2021
