June 2022 featured mostly bear market both in stocks and cryptocurrency; 2 key events took place: 1) US Fed just announced raising benchmark interest rate 75 basis points and 2) 3AC, Celsius failing their investors after TerraLUNA crashed in May 2022.
Stocks/ Options Trading
My key strategy of selling cash-secured PUT option contracts earned me a premium of $240.04. Here is how I exited the trades
- SOLD -1 GRAB 100 17 JUN 22 2.5 PUT @.10, Exit: SOLD -1 CALENDAR GRAB 100 (Weeklys) 24 JUN 22/17 JUN 22 2.5 PUT @.05
- SOLD -1 ARKF 100 17 JUN 22 15.5 PUT @.30, ASSIGNMENT 1.0 ARKF 100 17 JUN 22 15.5 PUT, Exit: SOLD -100 ARKF @16.3221
- SOLD -1 NIO 100 17 JUN 22 16.5 PUT @.40, Exit: BOT +1 NIO 100 17 JUN 22 16.5 PUT @.01
- Enter: SOLD -1 CPNG 100 17 JUN 22 10.5 PUT @.17, Exit: BOT +1 CPNG 100 17 JUN 22 10.5 PUT @.01
- Enter: BOT +8 SE @76.34 (Yes, I bought a very small position on SEA Ltd), Exit: SOLD -8 SE @73.71
In a Bear market, Mrs. adviced me to not own the stocks thus I changed not to execute the Wheel Strategy of Selling Call Options. I waited for market to rally, turned green for a few days before closing out the trades as per above.t
The alternate strategy is to buy PUT options.
In my last update, I mentioned this is what she (Mrs) did and it is likely to earn her a nice profit from AMD stocks to buy our newborn stroller from Joie. However, as her IBKR account already has AMD stocks, exiting the trade by exercising her rights caused her to forfeit the premium paid as well as the stocks she owned (similar to how you will lose your insurance premium paid if you request to withdraw from a insurance contract). Lesson learnt.
For Crypto, I currently hold small positions in CHAINLINK ($LINK), POLYGON ($MATIC) and TEZOS ($XTZ) through Coinbase. As the crypto market rout goes on, I am not expecting any returns in the short to mid term. The above projects are more than the usual hype, they hired great teams, are making useful and innovative products and spending huge effort to drive higher adoption and partnership.