Hello, Tiger friends, I hope you have a nice holiday. And Pray for Shanghai.
I want to review Q1 trading. The first quarter is full of swings. Nothing is impossible when the War has been happened. The S&P 500 quarterly closed down nearly 5%, while the Nasdaq quarterly dropped 9%.But there were still good sectors last quarter, such as energy,raw materials and public utilities, but I don't hold them.
Due to$Tesla Motors(TSLA)$ strong rebounded in March that made my account had no loss in the first quarter. But it was also thrilling. Review of Tesla, I sold my shares at $900 and $1000 through covered call options respectively in October last year. And then I kept doing Sell Put for several months, I earned premium of options steadily. As TSLA rose to $1,200, I raised the strike price of Sell Put to $1,000 and $1,050. Then I took over Tesla for $1,050 in February. Later I made up the position through Sell Put to an average cost of $960. When Tesla once fell to $700, I closed the small eyes of the account page
Recommend to everyone：closing eyes when your account plummet!😂
Last week, I Sell half position of Tesla at $1,000 through covered call, and the rest position are making Sell Covered Call at $1,200. At the same time, I continue to Sell PUT options at strike $900/$950. If the price arrives, take over it. I have to mention that manage your option positions and must not exceed the amount you can take over. Otherwise, if there is a sharp drop, it will be a margin closeout.
To sum up, I buy stocks through Sell Put options and Sell them through Sell Covered Call options. This is essentially a band strategy, which earns premiums when it is not exercised, and avoids waiting for no profit at all.
Looking at the trend of TSLA, all moving averages keep a long queue, and I believe the performance in April will still be good.
However, there is a small gap that jumps empty below, which should be made up.. If the market can remain strong until the Fed meeting in May, I think TSLA has a high probability of hitting the previous high point that about $1,200. So I put the selling price of Sell Covered Call at $1,200. If you also hold TSLA, you can also stop profits properly, provided that you are willing to sell it. If you don't want to sell it, don't do it for a little premium. When the price comes, the stock will lose the later gains if it is sold by exercise, but I usually think it is God's will.
I also did a good trade at Apple and buy it in a typical support level that the 200-day moving average at $155 directly. Although it was not the lowest point, but it started 11 consecutive rises two days later, and I sell a covered call of $185, but it didn't arrive. I will keep do it.
Because of the M&A, I traded options of $Activision Blizzard(ATVI)$, sell $78 and $80 Put. Because I bought shares at $80 from exercise, then I continue to Sell Covered Call at $80/$81, and sell half at $80. It looks no profit, but there is no cost in exercising, the premium of options is net profit.
When the market performs well, this stock was a drag, the premiums are not high, and the stock just rise a little. But its advantage were highlighted when the market plummets. This year, the market is very turbulent. Although this strategy earn not much, it could be persisted for a long time.
It is worth to rethink about $Berkshire Hathaway(BRK.B)$. At the beginning of the year, I wrote that Berkshire is worth to hold for a long time. But at that time, technology stocks were running too fast, In contrast, Berkshire is weaker than growth stocks, but after a sharp fall, Berkshire's tenacity is particularly obvious.
According to Tiger statistics, Berkshire has the best performance among the 10 largest US stocks, and Berkshire A has exceeded $500,000, so the strength of the stock god is very eye-catching.
I don't know if I can catch up with BRK.B. I plan to do some Sell Put options to see any chance to buy $320-$300. If I buy it, I plan to take it for a long time.
Q1 I made a mistake and took over $Netflix(NFLX)$ at $400, after its fourth-quarter earnings plummeted. But I didn't sell when it rebounded to $450, and ended up with a stop loss of $375 a few days ago.
After <squid game>, I was optimistic about Netflix, but it rose too much and I could not but it. As a result, I bought it directly according to last year's cognition.
In the interest rate hiking cycle, the company with poor profitability are not worth to buy. I think if the quantitative tightening in May, the market liquidity will continue to tighten, and the funds will give up companies with insufficient profitability. Moreover, NFLX's paying members story relies on single production too much. Recently, I watched a lot of dramas from APPLE TV and AMAZON, and APPLE TV just won the Oscar. I don't know what moat NETFLIX has in producing dramas. Is the so-called big data easy for APPLE and AMAZON?
Finally, I recommend two good dramas for your holiday. APPLE TV's "WECRASHED" adapted according to WeWork is very worth to watch, and the performance is very explosive. Another is Uber story "SUPER PUMPED", which is also the history of Internet entrepreneurship. The name comes from Uber's internal motto and is produced by BILLIONS's creative team.
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