Happy Niu-Year 2021!

MCO v2 – staying at home. Relatively quiet this CNY, not much visiting. Took few days of leave, good opportunity to review some of the past trades done last week.

My account is a very small account. Nevertheless, managed to record +YTD results. Hoping to maintain the positive consistency for the rest of the year.

Sold an iron condor (Apr 16) on Facebook (FB) – Call (220/225) and Put (310/315) – anticipating FB to remain in range bound. Even with recently announced positive earnings surprise, the stock did not move much. IV rank / IV is not as high as I would want for an option selling position.

Sold a credit put spread on Applied Optoelectronics Inc (AAOI) with Put spread (10 / 12.5) (Mar 19). Although the short put is ATM (or mildly ITM), took a decent credit to have a reasonable breakeven threshold. Expect AAOI to continue with its upward trajectory.

Sold a credit put spread (12.5 / 15, Apr 16) on Cue Biopharma (CUE) – anticipating its upward trajectory. Short position is very close to ATM (you have to be confident enough to sell ATM option). Nevertheless, I received a decent premium on this trade. As long as my max loss is less than 3% of total initial capital, I am fine to take this trade.

Sold another a credit put spread (12.5 / 15, Mar 19) on XL Fleet (XL) – anticipating it to trade in range bound. If compared to AAOI and CUE, the short position is not ATM (in view of anticipated range bound movement).

As I have been selling +delta option positions (shown above), my beta-weighted delta of my portfolio has spiked up to +8, which is consistent with current recovery theme / bull market (induced by the vaccine + stimulus). Will moderate / neutralise the portfolio exposure over time as I anticipate further volatility in H22021 (as real economic toll starts to materialise once the effects of the stimulus start to wane out). When global economies start to reopen, the prevailing over-valuation of tech sector may be in question.

DISCLAIMER: THIS IS NOT AN INVESTMENT OR TRADING ADVICE OR ENDORSEMENT. PLEASE REFER TO THE GENERAL DISCLAIMER OF THIS BLOG. IF IN DOUBT PLEASE CONSULT WITH YOUR LICENSED FINANCIAL PLANNER / ADVISER.

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