Portfolio Update (Dec 2018): over $17,000 gain!

Happy New Year!!

While almost all the indices have go down across the globe this year, my portfolio showed an incredible resiliency. Now the gap between my portfolio return and the indices are over 40%.

Blue line: my portfolio, Green: S&P500 (US), Purple: Nikkei 225 (Japan), Orange: TSX60 (Canada)

Blue line: my portfolio, Green: S&P500 (US), Purple: Nikkei 225 (Japan), Orange: TSX60 (Canada)

Now the cumulative return of my portfolio is over 80%, near the all time high since the inception. The total gain (Ending NAV - Deposits) is over $17,000.

Dec 2018 snap shot.png

The three actions I took in November, which were mentioned in the previous portfolio update, seemed to have worked quite well so far.

  1. The timing of selling the CVS Jan call option was really good. CVS stock price was near $81 when I sold the call option. Now the stock is traded near $65. If I waited to till the expiry, the options could’ve expired worthless (could’ve been over $1,500 loss right there… so scary…)

  2. I managed to purchase 200 Garrett motion stocks with the average effective price of $11.5 by selling the Dec put options. Now the stock is trading near $12.3. Although the stock price could fluctuate widely, I’d say I did a pretty god job having the 7% return albeit amid such market turbulence.

  3. The timing of purchasing the bear put option (Long put: $2,600, Short put: $2,400) on the S&P500 was not bad either. The position is in the money as the S&P500 is now trading around $2,500. I may write an article on the usage of bear put option later in the blog.

In December, I added the following positions:

  1. I sold one more put option on Garrett Motion (Strike: $12.5, Jan expiry, Price: $1). If the put option expires in the money, I can purchase 100 more Garrett stocks with the effective purchase price of $11.5 again. (Stock is now traded around $12.3).

  2. I added some more bear put option on S&P500 but for very short term. To be honest, this move was more for speculation rather than hedging. I may have gotten somewhat carried away from the previous success. Only time will tell…

Are you curious how my portfolio will perform in 2019? Subscribe to my blog and stay tuned!!

Portfolio Update: September 2017 (Over $10,000 Profit!)

This month, my portfolio hit an important mark: achieving $10,000 profit (including the unrealized gain). Even though the unrealized gain can fluctuate day to day until all positions are closed, seeing the number made me somewhat happy. 

September snapshot.png
Portfolio performance vs S&P 500 (benchmark)

Portfolio performance vs S&P 500 (benchmark)

September 2017 Position Summary.png

The main reason for this month's was gain was Gran Colombia Gold (GCM: TSX). As the gold price rose sharply this month, the stock price of Gran Colombia went along. Also there were several positive news (end of the strike, positive drilling result, etc.) were announced by GCM in September. 

6 months gold price chart (daily)

6 months gold price chart (daily)

GCM september.png

The problem with such sharp price increase is that it often is followed by sharp downward pressure short after. In order to protect my gain in GCM, I decided to buy a put option of GDX. GDX is an ETF which tracks a gold miners index. Should the gold price drops in the short-term, the put option should somewhat offset the loss. Let's see how this works out.