Trade Recap For the Past Month

$Technology Select Sector SPDR Fund(XLK)$

The technology sector has been doing well towards the end of 2023. With this in mind, I decided to sell put $XLK 20240119 184.0 PUT$ on 15 December 2023.

XLK Daily Chart

The pullback during the first week of 2024 definitely seems scary. However, I wanted to wait for the interaction at 184 support level, and luckily, the price bounced back without fail. I decided to take a profit and close the trade on 11 January to free up money for newer trades.

XLK Put Chart

At some point, my trade was down over 100%, which again I would like to emphasize that if you do not have the risk appetite, do not try to trade options as it can be very volatile!

XLK Put

$Microsoft(MSFT)$

I have mentioned a few times in my previous posts that Microsoft's price was consolidating, and there was a potential for a breakout. I sold put $MSFT 20240119 350.0 PUT$ on 19 December 2023. I chose a lower strike price of 350 to be on the safer side as tech stocks can be volatile.

MSFT Daily Chart

When the price started falling back to the low of consolidation, I planned to secure my profits if it fell below 364. However, we see a strong bounce from the bottom followed by a strong breakout from the wedge consolidation, and I took my profits on 11 January.

MSFT Put Chart

Quite a boring trade, with the price just consistently going down after I sold the put. Without a doubt, this kind of boring trade is my favorite!

MSFT Put

New position

$Alibaba(BABA)$, the Chinese e-commerce giant, finds itself at the center of a heated debate among investors. On one side, proponents argue that the company is undervalued, presenting a compelling investment opportunity. On the other side, skeptics express reservations about investing in Chinese stocks, raising concerns about transparency and regulatory uncertainties.

BABA Weekly Chart

I would like to see the price holding above 70 for a bullish outlook. Nevertheless, I have sold put with a 70 strike price. This is a cash-secured put so I will be entering a position of 100 shares if the price fails to hold above 70 by the expiry date. I feel that the price has no problem heading back to 100+ so I am not worried about bag holding the shares. Long-term speaking, it is also a fundamentally good and undervalued company. With that said, if you have intentions to follow this trade, be aware of the geopolitical risk revolving around Chinese companies. It's vital to conduct thorough research, analyze risk tolerance, and stay updated on relevant market news, especially geopolitical factors influencing Chinese companies.

Do you see it as an undervalued opportunity, or do concerns about investing in Chinese stocks make you hesitant?

Share your perspectives in the comments!

Disclaimer: The information provided is for educational and informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.

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