My Portfolio Performance: $3,426 in Gains While the Market Fell 📉$Palantir Technologies Inc.(PLTR)$
Yesterday, while the market tumbled with the S&P 500 dropping 2.95% (178.5 points), I managed to stay ahead and even recorded a significant gain of $3,426 in my portfolio. This result came from a strategic decision to sell covered calls as a hedge, which helped protect my investments during the downturn. By utilizing options to generate income, I effectively limited the damage that the market’s steep decline could have caused.$PLTR 20241220 72.0 CALL$
My Current Covered Call Positions
Here’s a snapshot of some of my key positions and how they contributed to my performance:
1. SPDR Portfolio S&P 500 Growth ETF (SPYG):
• Shares Held: 100 shares at an average price of $87.20.
• Current Price: $88.34.
• Covered Call Sold: Strike price of $90.00, expiring December 20, 2024.
• Premium Earned: $1.59 per share, totaling $159.
Even though the market fell, SPYG maintained a relatively stable price. The covered call I sold provided additional income, which acted as a buffer against potential losses.
2. Palantir Technologies Inc. (PLTR):
• Shares Held: 200 shares.
• Covered Call Sold: Strike price of $72.00, expiring December 20, 2024.
• Premium Earned: $3.56 per share for one lot, totaling $356.
PLTR performed well recently, allowing me to capitalize on its strong price movements by selling higher-strike calls. This strategy not only generated significant premiums but also reduced my exposure to sudden market dips.
How I Managed to Hedge Effectively
The secret to my performance yesterday lies in the power of covered calls. By selling calls on positions I already own, I generate immediate cash flow in the form of premiums. These premiums offset potential losses when the market declines, creating a natural hedge against falling prices.
Additionally, I carefully selected strike prices that I was comfortable with, ensuring that even if my shares were called away, I would still lock in a healthy profit. By diversifying across multiple stocks and ETFs, I balanced my risk exposure and maintained resilience during the market’s pullback.
Final Thoughts and Disclaimer
This achievement brings me immense joy, as it validates my investment strategy and ability to protect my portfolio during turbulent times. However, I must emphasize that this is not financial advice. I am sharing my personal experience and the joy of seeing my hard work pay off. Every investor has unique goals and risk tolerances, and what works for me may not work for others.
Investing requires thorough research, careful planning, and an understanding of one’s own financial situation. My approach may inspire others, but I encourage everyone to make decisions based on their own judgment or consult a professional if needed.$SPYG 20241220 90.0 CALL$
For me, yesterday was proof that a well-thought-out strategy can thrive even when the market is falling. Here’s to celebrating the wins and continuing to learn and grow as an investor! 🎉$SPDR Portfolio S&P 500 Growth ETF(SPYG)$
Comments