Follow up report on another portfolio the week after options expiry somehow landed up with a focus on France - sure hope they get a good recovery going.
Portfolio News
Big movers of the week to May 31 in this portfolio were Aurora Cannabis (ACB.TO) (+22.7%), Cronos Group (CRON) (+22%) and Harvest One (HVT.V) (+12.5%), all Canadian marijuana companies.
The headlines tell of the path to growing acceptance in the US - pretty well each day of the week is a news item.
Bought
Crédit Agricole S.A. (ACA.PA): French Bank. I chose to replace German banks assigned in last options expiry with the leading French bank. This was based on comparing relative price performance of European banks since the march 2020 lows.
The chart plots Amundi European Banks ETF (CB5.PA - the bars) against a range of European banks. Crédit Agricole (yellow line) has outperformed the other French banks (GLE.PA and BNP.PA) but is lagging behind the two German banks assigned (CBK.DE and DBK.DE). The chart does suggest looking at Dutch bank, ABN Amro (ABN.AS - bottom green line)
Carrefour SA (CA.PA): French Supermarket. In my pension portfolio, I chose to replace stock assigned in Carrefour with Casino-Guichard (CO.PA). Carrefour is the leading French supermarket chain - I added it to this portfolio. Dividend yield 2.87% - and I managed to grab the stock before ex-dividend day.
ENGIE SA (ENGI.PA): French Utility. Replaced stock assigned on covered call at 3.3% discount to assigned price - Dividend yield 2.88%. Stock was assigned before ex dividend date - drop in price is because of the dividend.
Barrick Gold Corporation (GOLD): Gold Mining. Set this up as a hedging trade in this portfolio. Bought the stock and wrote both covered call and naked put with a combined premium of 2.2% for June expiry. Dividend yield 1.50%
Wells Fargo & Company (WFC): US Bank. Replaced stock assigned on covered call at 2.3% premium to assigned price. Dividend yield 0.86%
Sold
No sales
Shorts
Invesco QQQ Trust (QQQ): Nasdaq Index. With price opening at $334.07 set up a June expiry 316/306 ratio bear put spread as a hedging trade. This offers protection for a fall between 5.7% and 9.2%. The 2 to 1 ratio made this a cash neutral trade.
iShares 20+ Year Treasury Bond ETF (TLT): US Treasuries. With price opening at $138.63 set up a June expiry 138.5/135 ratio bear put spread as a hedging trade. This offers protection for a fall between 0.1% and 2.7%. The 3 to 1 ratio made this a cash neutral trade.
Income Trades
22 Covered Calls written (US 16 Canada 2 Europe 4) and 13 Naked Puts written (US 9 Canada 2 Europe 2)
NVIDIA Corporation (NVDA): US Semiconductors. Nvidia announced stellar results in the week. I double up the naked puts written, writing at 550 first and then 570 a day later. Friday (May 28) close of $649.78 is 14% above the higher of the two strikes - I should be safe with that size of margin.
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
May 24-28, 2021