September 2021 Updates - How I Broke My Own Rules in Investing

Sept 2021

 

Local Portfolio Value after market close (excluding USD and HKD)

S$147,523.50

Purchase

 

84 shares of Support.com @ $24

36,000 shares of Sembcorp Marine @ $0.08 (Rights subscription under CPFIS)

Sold

60 shares of AMC @ $40.50

Dividends

 

1) CICT @ $279.72

 

2) CLCT @ $384.93

 

3) Ascendas Reit @ $192.85

 

4) MLT @ $216.10

 

5) ESR Reit @ $34.40

 

Total: $1,108

Short-Term Transactions

Closed 1 x SPRT Put 210917 at $26 strike with $11 premium early at $6.69.

 

Sold 2 x DIDI Call 210924 at $10 strike with $0.35 premium. Expired.

 

Closed 3 x SPRT Put 210917 at $19 strike with $3.70 premium at $3.40. 

  
Sold 1 x SPRT Call 210917 at $38 strike with $2.49 premium. Expired.

 

Sold 1 x SPRT Put 210917 at $14 strike with $1.15 premium. Assigned.

 

Sold 5 x SPRT Put 210917 at $13 strike with $0.84 premium. Assigned.

 

Sold 1 x FUTU Put 211015 at $80 strike with $3.60 premium.

 

Sold 2 x DIDI Call 211029 at $9.5 strike with $0.3 premium.

 

Sold 1 x TSM Put 211015 at $107 strike with $1.37 premium. 

 

Summary

For my SGD portfolio, not much change in terms of value. Collected S$1,108.00 of dividends this month. 

Decided to subscribe for Sembcorp Marine rights issue.

 

With this, I'm holding 60,000 shares at S$0.4052 average price.

 

Wifey's is 45,000 shares at the same average price.

 

Both of us are holding this under the CPFIS.

For my Syfe Core Growth portfolio, TWR has dropped to 3.77% which is lower than last month's figure, in line with the US and Chinese markets volatility.

 

Have DCAed into this portfolio yesterday and plan to continue this every month.

For my USD / HKD portfolio, I added 84 shares of SPRT at $24 and bring my holdings to 168 shares.

I also took assignment of 6 Put contracts for SPRT (1 x $14 and 5 x $13 strikes).

After conversion to Greenidge Generation (GREE) at a ratio of 1 SPRT : 0.115 GREE, my total holdings stand at 85 shares at average price of $167.03.

This whole exercise is a very bad mistake on my part. Many schoolboy errors were committed. I broke several of my own investment rules along the way despite so many years of investing. To be honest, I am very disappointed with myself.

How I Broke My Own Investment Rules

Yes, I have to make this bold and underlined to remind myself of this round of mistakes.

 

Mistake No. 1: I invested into the counter without doing enough due diligence. I knew it was going into a merger and the price is driven up by the euphoria but that's about it. I did my fair value calculations for the share price after I went in, not before. Schoolboy error.

 

Mistake No. 2: I got FOMO. Yes - after so many years, I still fell for it. Stupid. My emotion in investing definitely needs working on.

Mistake No. 3: I set a stop loss. But did not follow it. Really, stupidity has no cure.

Mistake No. 4: I traded options into the merger despite unknowns regarding the post-merger treatment of the option contracts.

I can go on forever... But the first 3 mistakes are pitfalls which I am well aware of yet I still fell in.. And the funny thing is that I always remind others not to do these..

Anyway because of this episode, my USD / HKD portfolio went from a profit of about 20% to now a loss of about 35%.

Hopefully I can fight back and level the field soon.

As mentioned above, I did a fair value calculation for GREE share price after I bought in and the value I got was $77 per share which gave a conservative market cap of around $3 B for GREE (RIOT's was $3.38 B when I did this calculation back then).

In other words, based on this $77 GREE valuation, each SPRT share must be bought at $9 or below in order to breakeven.

Hence if I have done my calculations first, I would not have bought into SPRT.

Of course as this past month has shown, the share price of Bitcoin miners has spiraled down as Bitcoin went into correction mode.

Taking that into consideration, if I take a conservative 80% of RIOT's current market cap at this point of writing as a reference, the fair value of GREE share should be around $49.

(0.8 * 2.39 B) / 38.67 M = $49 (conservatively speaking)

 

Currently Bitcoin is trading at around $43,000.

So assuming if Bitcoin goes back to around $50,000 which is the price when I first did my calculations, GREE should be trading at around $77 theoretically.

 

This also implies an upside of 308% from current share price.

 

However the issue is when will the market rate GREE at its fair value. Sometimes fortune favours the patient.

 

The current share price doldrum is partly due to the falling Bitcoin price and SPRT investors offloading to cut loss.

 

Once the loss cutting is done the share price should start to recover and consolidate in range.

 

My game plan or exit plan whichever is nicer to call, is to hold and try to position my average price to the fair value through DCA and options trading when the new option ticker is up for GREE.

 

The odds are against me but hopefully things will improve soon. Afterall GREE is a fundamentally good company at its base.

Enough about my mistakes for now...

This month I added S$7,500 into this portfolio and also received US$100.32 for the fractional GREE shares after conversion.

 

I also made a profit of US$1,473.93 (~S$2,006.79) from options.

 

Moving forward I will continue to use options to supplement my investable income and narrow the loss from GREE.

 

Last but not least, if you want to open a moomoo account you can do so using my referral link here. 

As always, good luck in investing!

August 2021 Updates

Aug 2021

 

Local Portfolio Value after market close (excluding USD and HKD)

S$147,427.16

Purchase

 

3,000 shares of CLCT @ $1.35

500 shares of ESR Reit @ $0.40 (PO + Excess)

84 shares of Support.com @ $50.94 average price

Sold

None

Dividends

 

1) Suntec Reit @ $84.36

 

2) SingTel @ $192

 

3) DBS @ $198

 

4) OCBC @ $265.50

 

Total: $739.86

Short-Term Transactions

Sold 3 x FUTU Put 210820 at $85 strike with $1.90 premium. Closed early at $0.25.

Sold 2 x SPRT Put 210820 at $5 strike with $0.55 premium. Closed early at $0.05.

Sold 1 x NVAX Put 210827 at $200 strike with $0.83 premium. Closed early at $0.05.  
Sold 1 x AMC Put 210827 at $35 strike with $0.41 premium. Closed early at $0.04.

Sold 1 x SPRT Put 210917 at $26 strike with $11 premium. 

 

Summary

02 Aug 2021 STI Open: 3,161.22

31 Aug 2021 STI Close: 3,055.05

 

STI closed lower than the opening of August with a drop of more than 100 points.

 

In my update last month, I've mentioned that the STI is range bound between a narrow band of 3,100 - 3,200 and it would be good if it can break out from the resistance level of 3,250. 

 

Unfortunately it broke below the lower band. I will monitor the market more closely in the coming month.

 

 

For my SGD portfolio, I added 3,000 units of CLCT at $1.35 and 500 units of ESR Reit at $0.40. 

For the former, I was waiting for the price to drop to $1.33 for a long time but it remained steadfast above that level (think I blogged about it in last month's update). So ultimately I decided to pull the trigger and bought in at $1.35.

 

As it turned out, the share price started to drop on the next day. Life's like that.

At least I bought below the issue price of the recent DRP. Since I am invested for the long term, I am not worried on this solid counter.

With this addition, my current holding for CLCT stands at 12,100 units.

For the 500 units of ESR Reit, it is from the latest round of preferential offering + subscription of some excess to round up to lot size. 

 

With this my current holding stands at 10,500 units.

For my Syfe Core Growth portfolio, current TWR is 6.59%. Not too bad. Still a small experimental portfolio.

 

Have DCAed into this portfolio couple of days ago and plan to continue this strategy every month end.

For my USD portfolio, I added 84 shares of Support.com at an average price of $50.94. Silly mistake due to FOMO.

 

Nevertheless I believe many people have benefited from the run up of this stock. I saw some comments that this is a life changing event for them and I really felt happy for these people.

 

It's not everyday that one can experience that so a big congrats to them!

 

This month's options trading is pretty good for me.

 

After making a loss of S$481.99 last month, I made a profit of US$686.55 (~S$922.24) excluding the SPRT Put which I sold at US$11 premium expiring 17th Sept.

 

I was targeting to hit S$1K this month but fell short of it due to early closure of the options for better sleep at night.

 

Moving forward I will continue to use options to supplement my investable income.

For my Cryptos, I have 2.250 BAT from the Brave Rewards worth USD 1.82 currently 😊.

July 2021 Updates

July 2021

 

Local Portfolio Value after market close (excluding USD and HKD)

S$146,878.60

Purchase

 

200 shares of Didi Global @ average $9.925

1 free share of Sundial Growers from moomoo's Father's day contest

2 free shares of Blackberry from two other moomoo's contests

Sold

None

Dividends

 

None

Short-Term Transactions

2 x AMC Put 210716 40 with $1.44 premium. Closed out early at $5.21.

1 x NIO Put 210730 40 with $0.30 premium. Closed out early at $0.16.

2 x expired TDOC Put 210730 141 with $1.94 premium

1 x DIDI Put 210723 9.5 with $0.06 premium. Took assignment.

2 x expired DIDI Covered Call 210730 11 with $0.07 premium

Summary

01 July 2021 STI Open: 3,124.19

30 July 2021 STI Close: 3,166.94

 

STI managed to nip the bud and closed above its monthly opening after it has closed below its monthly opening for two consecutive months.

 

However it seems that the index is still range bound between a narrow band of 3,100 - 3,200. It will be good if it can break out from the resistance level of 3,250. Meanwhile there are still individual counters for possible long term investment entry.

 

 

For my SGD portfolio, there is a gain of around S$4K due to the run up in share price of the Reits and banks.

 

No transactions were done. 

Looking forward to the next round of dividends coming next month.

Finally MAS has announced the lifting of restrictions in the dividend payout of our local banks.

I'm not surprised by this news but I am surprised by the timing of it because it was only last month that they gave an indication on this.

 

I must say they acted pretty fast which of course, I am not going to complain about.

This news has likely been priced in since the share price of the 3 local banks did not really rally after the announcement.

However I'm more looking forward to the reinstatement of the dividend payouts to pre-Covid levels which will be a boost to my passive income.

ESR Reit has announced another round of preferential offering. I will likely be subscribing but whether to opt for more, I am still undecided.

Was looking to grab some CLCT at around $1.33 but didn't managed to do so. Its share price moved up to $1.40 after it announced a good set of results.

Either way I am happy. Chances always come back.

For my Syfe Core Growth portfolio, I am seeing a lower TWR which should be a result of the share price plunge of the chinese stocks. However it would be more meaningful to see the returns and review the portfolio when it turns one.

 

Have DCAed into this portfolio couple of days ago and plans to continue this strategy every month end.

For my USD portfolio, I added 200 shares of Didi Global (DIDI) at an average price of $9.925 for this month.

 

100 shares were bought from the market at $10.35. The other 100 shares were assignment from a put that I wrote.

I also received free shares of SNDL and BB, won from some contests in moomoo.

 

I really like the fact that there are frequent questionnaires, quizzes and contests in moomoo that one can participate to win points and free shares which to be honest, are quite easy to get.

If you still haven't sign up with moomoo, here's my referral link if you wish to do so.

 

You can check out the other sign up goodies here too.

By the way they are currently running a quiz where cash coupons can be won. The quiz questions are quite easy and for each correct answer you gave, you get a chance to draw from a gachapon machine.

It's quite fun and so far I have accumulated S$7. Hopefully I can get the S$88 or S$1,888 on the next rounds.

 

This month's options trading is a mixed bag of results for me.

 

After collecting ~S$900 worth of premiums last month, I made a loss of S$481.99 this month mainly due to the 2 AMC Puts which I decided to close early as I did not want to take assignment for now since I already have some existing shares bought in January this year.

I did took assignment for the DIDI Put that I wrote at 9.5 strike price as this counter is one which I have been eyeing but didn't buy when it got listed earlier this month. 

 

Reason is because I felt more margin of safety is necessary for this counter due to its fundamentals and the manner in which it rushed through its IPO despite concerns from the chinese authorities.

 

My personal take is that it was facing pressure from the cornerstone investors to list fast for profit-taking reasons. 

As it turned out, the backlash from the authorities came fast and furious. I'm glad I opted for the increased MoS.

 

Other than these, the other options are profitable ones. The 2 x TDOC Puts expired with decent total premium of US$388 (~S$525).

Moving forward I will continue to use options as part of my tools to supplement my investable income.

For my Cryptos, I have 2.000 BAT from the Brave Rewards worth USD 1.27 currently 😊. Well at least that is something.

Half Year Review of My US / HK Portfolio Performance

Time really flies. It seems just like yesterday when I made the first step investing into the US and HK stock markets as part of my plan for geographical diversification as mentioned here.

 

An equally important reason for doing so is because I wanted to add in some growth element into my overall portfolio approach and naturally I turned to the huge potential in these markets.

Notwithstanding the above, my SGD income portfolio is still an important part of my overall investment strategy because it provides a good and stable base for me to 'fight' it out in the overseas markets.

 

In a nutshell,

SGD Income Portfolio - Solid base of regular dividends

US and HK Portfolio - Exciting capital growth
Syfe Core Growth portfolio - Separate passive growth basket

However, this post will be excluding my Syfe portfolio which I am building up separately.

Today marks the half year mark of me depositing my first funds for the overseas market and hence I felt it would be appropriate to do a quick review on my performance so far.

Total Capital Invested: S$20,000

Current Return at Point of Writing: S$22,882.52

Total Realised & Unrealised Profit: S$2,882.52

Well, slightly over 10% returns in 6 months. I can't say I am satisfied with this since just 1 - 2 weeks ago I was looking at about 20% returns.

 

Nevertheless a profit is always better than a loss.

 

This decline can largely be attributed to two main reasons as follows:

 

1) Couple of PUT options which I closed out early with a loss this month as I decided not to take assignment for now. Perhaps I will write more about this in my monthly update for July.

 

2) The fall in share price of the chinese stocks in recent days. 

 

From the beginning to now, I have pivoted from dabbling in a mixture of Growth + "meme" stocks to mainly Growth + Mega Caps + Options now.

 

My current holdings (excluding option positions) are as follows:

 

Microsoft (MSFT)

Apple (AAPL)

Didi Global (DIDI)

BABA (9988.HK)

AMC Entertainment (AMC)

Blackberry (BB)

Sundial Growers (SNDL)

The latter two are free stocks won from some contests in moomoo.

 

Moving forward this shall remain my strategy. Hopefully when I do my first year review the returns will be much better!

Lastly, just sharing my referral links as below for moomoo and Tiger Brokers, both of which I am using.

If you like to sign up for these brokers I would greatly appreciate in you using my link to sign up. Cheers!

Referral link for moomoo

Referral link for Tiger Brokers

 

Referral code for Syfe: SRPTZHC7V

June 2021 Updates

June 2021

 

Local Portfolio Value after market close (excluding USD and HKD)

S$142,981.25

Purchase

None

Sold

None

Dividends

 

MNACT @ $131.96

Netlink Trust @ $204

Ascendas Reit @ $534.85

OCBC @ $86.26 + partial scrips

MLT @ $216.10

ESR Reit @ $80

DBS @ $108

 

Total: $1,361.17 + partial OCBC scrips

Short-Term Transactions

1 x expired AMC Put 210604 24 with $1.06 premium

1 x expired AMC Put 210611 24 with $1.65 premium

1 x expired AMC Put 210618 31 with $1.60 premium

1 x expired AMC Put 210618 40 with $0.58 premium 

2 x expired AMC Put 210625 35 with $0.42 premium

1 x expired JD Put 210625 69 with $1.14 premium 

 

Sold 2 x AMC Put 210716 40 with $1.44 premium  

Summary

01 June 2021 STI Open: 3,187.23

30 June 2021 STI Close: 3,134.22

 

STI closed below its monthly opening for the 2nd consecutive month after 4 months for rise. It also dropped below last month's closing.

 

It could have been worse if not for today's jump in the share price of the 3 local banks after MAS signalled the possibility of dividend payouts reverting to pre-Covid levels. However this is subject to further stress test by MAS before anything will be confirmed.

 

For my SGD portfolio, there is a negligible (slight) drop in value with no transactions done. 

This month I received a total of S$1,361.17 in dividends + partial OCBC scrips.

Didn't make any transactions this month for this portfolio.

 

When I have no time to go through annual reports, I usually as a minimum, try to read the Chairman and CEO message in the reports.

 

Read the messages for MLT and MNACT annual reports last week. Gained some insights from the messages.

 

Have wanted to blog about the summarised results and some of my thoughts but didn't managed to do it so far.

 

Anyway in a nutshell MLT is impressive as usual while MNACT is less so. Outlook for the former is great while that of the latter is more uncertain.

For my Syfe Core Growth portfolio, I am seeing a higher month-on-month return so far with this month's reaching the highest based on TWR. However would be more meaningful to see the returns and review the portfolio when it turns one.

 

Have DCAed into this portfolio yesterday and plans to continue this strategy every month end.

For my USD portfolio, no transactions were made for this month.

 

Currently seeing a 260% paper profit for one of my counters. Will continue to let it run and monitor closely. It has been ranging in a tight band recently and has tested the resistance a number of times which should weaken the level.

 

Might have a chance to break out higher.

 

Collected S$903.23 of option premiums this month with the expiry of 7 Puts in AMC and JD.com.

 

Other than these, I have sold another two Puts this month for AMC, expiring 16/7/2021 with a strike price of $40 and premium of $1.44.

 

As seen above, I am making full use of the volatility in AMC to earn some income. I certainly don't mind if this continues.

 

Usually for far OTM Puts with near DTE, premium is usually quite lousy. But the volatility in this counter means one can continue to get decent premiums even for relatively safe options.

Moving forward I will continue to use options as part of my investment / trading tools to supplement my investable income. 

Although I have been saying that I have not touched cryptos yet, recently I realised I actually have a crypto!

And that is 1.750 of BAT, worth a grand total of USD 1.01 currently. Well at least that is something.