TIB - An Investors Journal #625 - Europe/US Banks, Dutch/US Insurance, Europe Automotive, Europe Utilities, Electric Vehicles, Oil Services, Australian Property, US Treasuries. Europe Index, Nasdaq Index + more
Bought back a few stocks, mostly European, that were assigned the week before. Set up a bunch of new credit spreads - maybe more than I should have. Really hoping for a rally once the September quarter clears.
Portfolio News
In a week where S&P 500 dropped 4.57% and Europe dropped 7.66%, my pension portfolio dropped 3.74%. Japan was positive again. A few Australian resource stocks gained. The drags were alternate energy in US especially
Big movers of the week were Direxion Daily Real Estate Bear 3X Shares (DRV) (+20.7%), ProShares UltraPro Short QQQ (SQQQ) (+14.5%). This is the week the market capitulated - no long stocks could make a 10% gain
News centred on the Federal Reserve and the prospects for recession.
Crypto Drifts
Bitcoin price bounced along all week off the support level just below $19k with a series of higher lows and lower highs on the 4 hour chart
I did not look at the charts for other holdings early in the week - got busy
Bought
ABN AMRO Bank N.V. (ABN.AS): Dutch Bank. Rounded up holding after DRP and replaced stock assigned at 1.5% premium to assigned price. Added a few more tranches at 2.5% to the other assigned price from the week before. Wrote covered call for 1.4% premium with 8.5% coverage.
Commerzbank AG (CBK.DE): German Bank. Replaced some of the stock assigned at 5.4% premium to assigned price. I am looking to credit spreads as a way to rebuild my position though trading costs are a high cost factor. Wrote covered call for 2.1% premium with 9.9% coverage.
Deutsche Bank AG (DBK.DE): German Bank. Replaced stock assigned at 0.94% premium to assigned price. Wrote covered call for 1.6% premium with 10.1% coverage.
ING Groep (INGA.AS): Dutch Bank. Landed up with odd lots as multiplier on assigned covered calls was not standard 100. Bought shares to round up and to replace stock at 2.2% premium to assigned price. Then rounded up by the wrong amount - fixed the error by selling the wrongly rounded tranche for trading costs. Wrote covered call for 1.5% premium with 7% coverage.
ENGIE SA (ENGI.PA): French Utility. Replaced stock assigned at 1.7% premium to assigned price. Wrote covered call for 1.4% premium with 6.1% coverage.
Aegon NV (AGN.AS): Dutch/US Insurance. Shares added in DRP - saves withholding tax
Volkswagen (VOW.DE): Europe Automotive. Volkswagen announced the final dates for the Porsche IPO. The cash windfall for Volkswagen is massive and is earmarked, after paying a special dividend, for development of its Electric Vehicle strategy. I added a small parcel without exploring eligibility for buying in the IPO - Australian investors are excluded. Rounded up the parcel to average down entry price and to be able to write covered calls in a 2nd purchase later in the week. Wrote covered call for 1.2% premium with 10.6% price coverage
Centrica plc (CNA.L): UK Utility. Replaced portion of stock assigned at 1.2% discount to assigned price. Wrote covered call for 3.48% premium with 1.24% coverage.
Global X Autonomous & Electric Vehicles ETF (DRIV): Electric Vehicles. After losing TTB on a 25/24 credit spread, added a parcel of stock below the spread as chart looked like it wanted to reverse.
TechnipFMC plc (FTI): Oil Services. Replaced stock assigned at 2.17% premium to assigned price.
Huntington Bancshares Inc (HBAN): US Regional Bank. The last analysis on SPDR Regional Banking ETF (KRE) showed HBAN lagging 22 percentage points. Added a small parcel to average down entry price. Wrote covered call for 1.1% premium with 7.8% coverage.
Eneti was Scorpio Bulkers Inc (NETI): Bulk Shipping. Stock has been in the big movers a few times in recent months. Chart shows price trading in a range with solid support at the top of the previous range. Added a small holding to average down entry price.
PayPal Holdings (PYPL): Payment Services. Chart is showing life after the calamitous drop following the termination of the eBay partnership. Averaged down entry price when price started consolidating. I will cherry pick away to get to a holding I can write covered calls on.
Sold
2/2 Oakey Creek Road Australian Property. After 20 years sold my Hunter valley house for exactly 100% profit. This return was 23% points higher than the annual consumer price index increases. However it lagged the 30 year return on Australian shares of 9.8% annual. This is not exactly a fair comparison as in that time period I did not pay rentals when I was living in the house (2006 and some of 2007) and did not pay for weekends away. And for a while from 2002 until 2005 I was earning rental income for weekend lettings.
Article on long run investing returns in Australia
Hedging Trades
iShares 20+ Year Treasury Bond ETF (TLT): US Treasuries. With price opening at $105.69 (Sep 20) put in place October expiry 104/101 ratio put spread. Trade is cash neutral and offers protection for a drop in price between 1.6% and 4.6%. Longer duration treasuries are getting a bid on down days and I felt it was OK to do a ratio put spread. Started getting a little uncomfortable with price drifting lower and added in a 102/98 bear put spread (Sep22). This effectively leaves 104/101 and 102/101 bear put spreads and a 98 strike naked put. Price has not dropped below $100 - should be Ok
Vanguard European Stock Index Fund (VGK): Europe Index. With price opening at $48.80 and trending lower, adjusted ratio put spread by covering 3 contracts short at 48 strike and selling more further out the money. Trade was cash neutral but did trigger a 131% loss. This leave a 40/48 bear put spread and a large 46 strike naked put exposure. This might require some kicking the can down the road
Invesco QQQ Trust (QQQ): Nasdaq Index. Exercised short on 285 strike put option. As the portfolio may not hold short positions, the broker closed out the short for 2.7% profit. With a mismatch of dates this leaves an exposure to buy at $280 (Sep 30) - looking for an up day to roll this out. Hedging trades year to date are profitable - not quite enough to pay a month's pensions.
Cryptocurrency
Sold Chiliz (CHZBTC) for 60% profit from the highest entry point. Have put in a pending order to replace the coin at the last reversal swing low.
Income Trades
In pension portfolio wrote 61 covered calls (US 45 UK 4 Europe 12) and one naked put (US 1). Have not updated managed portfolio accounting to report what was written there. Options premiums have jumped with most trades over 1% premium and 10% price coverage. I have been looking for wider price coverage this month.
Credit Spreads
Having said I wrote too many credit spreads last month, I seem to have drifted into the same trap with 13 written - list below
AAPlus ideas with ROI's AMN Healthcare Services (AMN): US Healthcare. 13.7% American Water Works Company (AWK): US Utility. 44.9% CBOE Global Markets (CBOE): Financial Markets. 27.1% Elevance Health (ELV): US Healthcare. 29.3% Deere & Company (DE): Agricultual Equipment. 22% Chargepoint Holdings (CHPT): Electric Vehicles 53.8%
My ideas Global X Autonomous & Electric Vehicles ETF (DRIV): Electric Vehicles. 25.8% Robinhood Markets (HOOD): Financial Markets. 30.7% Sunrun (RUN): Solar Power. 25.3% Solaredge Technologies (SEDG): Solar Power. 48.1% Stem, Inc (STEM): Alternate Energy. 8.7% Adyen NV (ADYEN.AS): Payment Services. 38.3% ENGIE SA (ENGI.PA): French Utility. 29% Barclays PLC (BARC.L): UK Bank. 29%
I havebeen delayed in updating the spreads spreadsheet. Will not shre it here suffice to say there is some exervise risk to be managed with Elevance Health (EVH) the biggest.
Resources
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers. Crypto tickers come from TradingView
Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices
Investing: Interactive Brokers provides comprehensive global markets coverage with very competitive commissions. Open an account to earn up to USD 1,000 in IBKR stock. https://mclnks.com/ibkr
Crypto Trading: Binance offers a wide range of coins to trade, tight spreads and low fees if you use BNB to pay https://mymark.mx/Binance
Kucoin offers a wider range of altcoins than many of the other exchanges. I do like to diversify my holdings in case an exchange gets knocked over. Grab 15% discount on your trades when you open an account on this link https://mclnks.com/kucoin15
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September 19-23, 2022
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