Special circumstance investing – December update

Another month with large moves. The year has been good but that is a subject for the annual post. First this month.

What did I do

I had to roll my AB Inbev puts. the low price of AB Inbev was on the one side good news as it created an oportunity for a new leverage construction that should bring nice big profits but not so good news for the put option at strike 100 I had sold. Luckily I could roll it to a later expiry date (March 2018) and even collect some premium for doing it: another 485 euro added to the investment account.

I unwound my old leveraged construction. Final profit there is around 20 000 USD. The federale reserve raised their intrest rates twice which in turn made my financing fee more expensive. So I lost some profit there. I also didn’t feel like keeping a detailled overview of the exact cost as that is just to much work 😉 At the beginning of the construction I had estimated potential profits being broadly between 21 000 and 24 000 USD. The higher borrowing costs knocked a little bit off but all in all it was a good run. And I rather put time and effort in finding new investment opportunities than keeping exact and detailled cost overviews.

About the new investment opportunties: I replicated the levereaged constructon I did in the girlfriends portfolio last month in my own. Kept the leverage at a reasonable X 1,6. Profits of this should be between 20 000 and 40 000 euro. We will see in December 2018 how it went.

I sold the UVXY puts I bought early November. 53 puts bought at 5,5 USD a piece and sold for 6,20 USD. So more than 10% profit in 2 months. After costs I added 3 455,80 USD to the investment account.

Daytrading brought in another 300 USD. I stopped day trading around 10 december because I wanted to close out the old leveraged construction and start a new one. And I didn’t want any other postion on my books while doing it. it will be some time before I start again with the daytrading as I first want a decent profit buffer in the leveraged construction. I am ok with it as I started to become a bit tired with the frequent daytrading in the evening. We’ll see in May, June if I get back into it but for the next few months my investing will be limited to watching the leveraged construction and UVXY puts. Lazy investing at it’s finest, bliz!!

The girlfriends portfolio

Off course I rolled her AB Inbev puts also. An extra 237 euro in her account. (I also did it in the parents portfolio, I told you I had a busy month!).

No more day trading in her portfolio as she allready had the leveraged construction since november.

I also sold her UVXY puts at 6,20 USD. Total profit for her: 2 608 USD. Happy Christmas honey 😉

I also sold my parents UVXY puts, also for a nice 10% profit. I did finally convince my parents to put some extra cash in the investment account. Next month I will unwind the old leveraged construction they still have and then duplicate the same leveraged construction both me and the girlfriend already have. All this means I will have some extra cash to plow into UVXY puts for them as of next year.