Week 48 - Nov 27 Investment Moves

Week 48 - Nov 27 Investment Moves

• Today US markets - Down
• Nov 27 Investment Moves
• Explaining Selling Dividend Stock / Buying Bitcoin Exposure.
• Nov 27 Bitcoin/Ether Price

Today US markets - Down

Markets are down as of 11:50 am (EST). Normally the markets are GREEN on Black FRIDAY, so I'm not worried about what the markets are doing today. Going into December, the markets are often GREEN for the month with a "Santa Claus" rally embedded at the end of the year.

Nov 27 Investment Moves

Summary of investment moves:

• Rolled AMD Put credit spread Down and out for $16 each.
• Closed ALLY put credit spread for $4 (debit).
• Sold 40 shares of F (against its dividend on 12/2).
• Sold 1 share of V (against its dividend on 12/2).
• Buy 28 shares of BITO.

Explaining Selling Dividend Stock / Buying Bitcoin Exposure.

Why am I selling Visa if I believe it's going to be worth $400+ in the future? Why am I selling Ford shares today?

The reason is simple:

• Reduce my position in dividend stocks.
• Dividends are being paid on 12/2 for Visa and Ford.
• I believe Bitcoin will outperform both VISA and FORD.
• Using DIVIDENDS (or dividends from dividend stock) helps me follow a DCA (dollar cost average) method. Is this the most profitable method? No, it's not!
  This method helps me control the size and/or the "rotation" within the portfolio. For some positions, I want to grow the share count. For other stocks, I want to reduce the share count. So, using this method, I can fine-tune that setting four times a year (for each stock).
• As an options trader, I only need lots in multiple of 100. Getting 100 shares of VISA from Dividend is not feasible for most investors (including myself). So it makes sense to sell off the dividend in this holding while for something like ET or BAC, it makes sense for me to try to hit the next milestone.

Nov 27 Bitcoin/Ether Price

Here is the price for today:

Bitcoin dropped from 98K to 92K-93K range. From a "trader" point of view, I don't worry about the small price difference. I still believe in the short term, I can buy now and it will be worth more in 2025 (April-Dec). I don't know when the peak will be but I will sell into STRENGTH starting in March/April 2025.

What if Michael Saylor affects Bitcoin price bottoms, meaning what if we never see a 70%-85% drop ever again? This can change the way Bitcoin trades in the future. This is one thing I need to factor into my "SELLING" method, or do I adopt the "never sell BITCOIN" thinking?

What do you think?