Hey everyone,
Ever since I posted the positive divergence in the US major stock indices, despite the gut wrenching volatility, the market has been slowly inching upwards and providing us a bullish inclination as expected.
With Trade Ideas approach, I have been executing some option trades, covered calls, writing options (selling calls & puts) in stocks and also implementing a time tested strategy for US Index monthly option trades. These have been favourable so far and has given some juicy gains in the last few months.
I use this blog space to document my trade performances.
The index strategy is used in Russell 2000 index. Since September, I have executed 6 trades with 100% win rate and has provided an annualised RORC (Return on Risk Capital) of 53%
The stocks and options strategy has good win rate too about >80%. I use it to try to gradually add some income stream to the portfolio. This strategy was started in December 2022 and so far, it has given about $1450 profits. 3 trades are still active with this strategy.
The covered call or credit option trades helps to reduce the cost basis of the stock position.
Depending on how the early next week market is, I will look to add some option trades as per the above approach in my portfolio. The GrowWealth's "Trade ideas" cover all approaches to investing and trading that I have learned over the years. The VIP portfolio that started around the time of market peak in 2021 is also being maintained. The trade strategy used in that portfolio will be the same as in "Trade Ideas" trades.
Market may crash anytime. It certainly is volatile. So I am conscious and cautious in the trades I take and am aware of the stop losses and risk mitigation strategies. The easy market we had after April 2020 was an exception rather than the norm.
The mechanical entry and exit signal based trade set up in crypto has also helped to be invested in Bitcoin and Ethereum prior to the recent bounce. The active trade in Bitcoin is at an unrealised profit of ~36% in 1 month.
The "Trade Ideas" approach is proving to be a successful strategy in the recent market conditions.
Happy Learning and Successful Investing.
Disclaimer: This material is intended for educational purposes only, and is not recommendations to buy or sell any financial instruments or products. Do your own due diligence and make your own decision. The value of your investments can rise as well as fall. Capital is at risk when investing in any financial products. You could get back less than you invested. Past performance may not be indicative of future results.