As 2024 draws to an end with Christmas bells ringing, I finished adjusting most of the positions for the year. Looking back, I started 2024 with backlog from 2023. I did 2 major mistakes then in 2023. 1. Overconcentrated positions in Alibaba, which resulted in big swings against my portfolio. Margin requirements went up significantly also, as at peak, up to 80% of my margin requirement was used up by Alibaba. I resolved to reduce my Alibaba sizes in 2024 and diversified away. This is also the reason why many experienced investors advocated portfolio and risk management. Over concentration does bring fast money, but disproportionate risks as well. 2. Earnings play. During 2023, I dabbled in earnings play by selling short strangles. Most of the time, I made money, but
I opened 4 lot(s) $DJT 20250221 70.0 CALL$ ,Adding back short DJT positions. With increase of DJT price, call option strike can be adjusted to $70 which provides significant protection.
I opened 6 lot(s) $HEX.HK 20250227 270.00 PUT$ ,Replacing the dec put option with Feb option by rolling. This additional lremium will offset the debit caused by rolling from $265 call to $270 call.
I opened 6 lot(s) $HEX.HK 20250227 270.00 CALL$ ,Decided on replacing with higher strike at $270 from $265 call. Not ny style to do debit roll, but when considering the call as strangle position with >$2 premiums collected, after deducting the debit, it's still positive cash flow. Decided to go nearer the money, for easier management of position
I closed 6 lot(s) $HEX.HK 20241230 265.00 CALL$ ,Decided to close early to avoid assignment. Will replace with further out in time call option. Considering between same strike or defensive position with higher strike
I opened $ProShares UltraPro Short QQQ(SQQQ)$ ,The last remaining contracts that nobody wanted to do early assignment. 🤦♂️. Finally gotten assignment. Didn't want to roll as 1. sqqq gotten reverse split, rolling becomes messier. 2. Since markets are at all time highs and sqqq is at lows, the chance of reversal is higher. Maybe more worthwhile to hold stocks than short puts that are seep itm
I closed 4 lot(s) $EL 20241220 85.0 CALL$ ,Expired for 100% premiums. Risk level was higher until Fed announcement. After that, there's almost no risk left. Hence I let it expire. Will look to replace the position to form strangle.
I closed 4 lot(s) $BABA 20241220 100.0 CALL$ ,Expired worthless for 100% credit. Quite risky towards the end. Glad for successful expiry. Already replaced a longer dated call to form strangle before expiry. So will not take anymore action for short call. May consider adding to short put instead
I opened 4 lot(s) $BABA 20250221 100.0 CALL$ ,add call to replace call that will likely expire worthless. this will reform back the baba strangle. Changing from 87.5 put 100 call to 85 put and 100 call
I opened 4 lot(s) $BABA 20250221 85.0 PUT$ ,Rolled baba put from $87.5 strike to $85. Reduced premium and added time value to 60plus days to improve strike position By $2.5