A busy month where some large moves were made. Busy is relative, some people think nothing of doing dozens of trades in a month. My ideal is two or three trades, a year! On the other hand, the flurry of activity has been profitable. And I like doing it so it remains to be seen if I will be able to restrain myself once I hit my Fire numbers …
What did I do
I rolled my Ahold delhaize puts again to January this time. But this time I did book a nice profit on it. An extra 265 euro on the account for my troubles. Ahold Delhaize has, in the mean time moved above 18 euro proofing that 17,5 euro was indeed not a bad strike price to write puts at and that the market would take a few months to realize this company will continue to make healthy profits even if Amazon did purchase Whole Foods …
AB inbev did move in the wrong direction so I might have to roll this one now. On the other hand, the price drop did create a nice new opportunity (more about that in the girlfriends portfolio).
As mentionend last month I was planning on deploying a lot more money in a new UVXY put position. I bought 53 puts on UVXY, expiration 01/2019 for 5,5 USD a piece. I had a nice 5% profit on them but am at a small loss now. It is a volatile product which I am watching closely. But all profits, and day trading profits, will be used to enlarge this position in the future.
Day trading profits are 1 500 USD for the month. And I didn’t trade for a week as Google reached all time highs. My rule of not day trading proofed it’s worth once more as it helped me avoid the drop from 1074 USD to the current 1025 USD level.
All in all I more than earned back the 1 500 euro withdrawal from last month.
The girlfriends portfolio
I off course had to roll the Ahold delhaize puts in the girlfirends portfolio as well (and in my parents portfolio too!). Same strike and same expiry as I want to keep things as simple as possible to keep track of. The girlfriend added 302 euro to the portfolio.
Also a new UVXY put postion for the girlfirend: 40 puts same expiry, strike and price as mine. Add to this the position in my parents portfolio (yes there too!!) and I now have a very large position in this. Watching it as a hawk!
Daytrade profits for the girlfriend were 700 USD this month.
I already mentioned the drop in AB Inbev created a new opportunity. After having no leveraging since March I set up a new leverage construction in her portfolio. No details as I do not want any responsability for anybody blowing up with this weird shit. For certain stock at certain price levels it offers very attractieve returns for very little risk. In all other circumstances it is very dangerous …
But if all goes well she should make 12 000 euro of it. It just proves you do not need dividend paying shares to generate a nice cash flow from your investments. As a bonus, dividends are taxed at 30% where option premiums and the above are tax free!
cash before the construction
cash after the construction
Best of all is she received the money up front meaning she will have that more cash to deploy in the UVXY puts. UVXY puts being another thing offering nice returns at certain price levels and under certain conditions but dangerous at all other times/price points. The combination of both, provided the execution is done well, should make for very, very healthy returns …
I guess 2018 is the year where I find out …
All nice numbers Sloth! When do you sell a small part of your berkshire hathaway portfolio to generate enough cashflow to start full time option trading? No commute, no employer trouble due to your hernia etc.
I don’t need to sell Berkshire hathaway to generate cashflow. Over the last two years I generated over 40.000 USD in cashflow without selling a single share, by using the shares to take leveraged positions which generate profit … Never going to sell them …
Nice daytrade profits bro!
Could you send me your construction in AB Inbev by mail? I’m currently figuring out how to profit most from there price drop and an extra point of view would be welcome 😉
No problem, I’ll send it tomorrow
Can you send me the inerworkings of your construction as well pls? just out of curiosity, leverage is not really my thing.
I rather not. As I said in the post: ‘No details as I do not want any responsibility for anybody blowing up with this weird shit. For certain stock at certain price levels it offers very attractive returns for very little risk. In all other circumstances it is very dangerous …’
I know Whendoyouretire for over a year now and have met him several times in person. So I know he is not going to do anything stupid with the information I gave him. And if he does, he will take full personal responsibility for it. For persons I do not know on that level, sorry but no. I just closed my old position from last year and replicated the girlfriends position in my own account and honestly, I am literally shaking. The last time I had this amount of adrenaline running through my body I was a much younger and fitter man. And it probably wasn’t healthy then either…
I really don’t like being long VIX. There’s just no good financial instrument for it. I think they said that being short UVXY is the most profitable trade of the past decade (or being short VIX). The long VIX etfs are eroded like crazy.
The returns are indeed crazy. Apparently I discovered it a bit late. But better late than never. Hoping to have a few profitable years with it …