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My US$ 510,000 Account Positions Revealed, Short VIX calls, Long SPY puts (Portfolio 2021-02-20) - YouTube
Channel: unknown
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Today is the third week of February 2021
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Let's check my current account balance
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This is my TD Ameritrade account
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The current account value is 510000
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In August 2020 I transferred some stocks from another broker
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So that's why it jumped here
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I also transferred stocks from another broker in January 2021
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You can see my current balance
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Let's check my cost basis
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My year to date gain from January 1st to February 21st
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18000 here
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Realized Gain
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I also have unrealized gain
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The long positions are the stocks I long
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or the options I long, such as buying calls or buying puts
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The short positions include
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directly shorting stocks or selling options
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such as selling covered calls or selling naked puts.
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If you combine them
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My unrealized gain is about
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110000
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This is my TD Ameritrade portfolio
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You can see my net liquidation value
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here 510000
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Let's look at my positions here
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I have positions in ARKK.
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Qty means quantity,
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the number of shares I'm holding
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Net Liq means the net value of the stocks
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So that's 100 shares
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15000
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You can see my trade price here
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The trade price is the price that I
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opened this option
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So I sold it for $3.50
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and now the current value,
the mark price
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The mark price is a current value of the option
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I have gained some time value of this option
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I'm also holding QQQ
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I have 300 shares
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The net value is about 100,000
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1 contract of options
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is for 100 shares
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If we combine these two rows, (-2) + (-1)
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These three contracts are for the QQQ 300 shares
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I also sell to 2 naked calls and one naked put
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The reason I sell a naked call is that I have some other stocks
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such as
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Apple Amazon
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Facebook Google
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Microsoft QQQJ
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You can see the value here
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60000
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Ask the current price of QQQ is 330
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200 shares is almost the same as
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60000
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When we sell calls,
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we don't have to sell
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the real covered calls.
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We can sell the QQQ call
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But
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We are owning other stocks,
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the reason I sell QQQ call is that
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QQQJ's options are very illiquid
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If your check QQQ calls here
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You can see that the
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bid and ask spread,
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the difference between bid price and ask price
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is not so big
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It's just a $0.07 compared with $6
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$0.07/$6 is like 1.2%
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But for QQQJ
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If you sell the option at the bid price,
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and buy the option at the ask price
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Then you have already lost $0.05
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10% of the option value
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$0.05 / $0.40
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That is more than 10%
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That's why
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I do not like to sell QQQJ options
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It is very illiquid
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To find the correlation between two stocks
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We can put them here. QQQ and QQQJ
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This is the daily correlation. You can see that
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They are highly correlated.
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If the value is 1, the value here is 1
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it means that
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they go up and go down at the same time
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Let's go back to my portfolio
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I'm still holding Alibaba stocks
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You can see the covered call,
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now is 54 days to expiration
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I have rolled the covered call from
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1 month to 2 months away
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I will explain more details about how to roll options in the later videos
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I also have KWEB naked puts
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89 days to expiration
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I'm shorting UNG
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UNG is the natural gas ETF
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You can see that I sell calls here
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Selling calls means that I have a bearish bias on this stock
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I earn money when natural gas goes down
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But I lose money when natural gas goes up
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If we add the quantities of the options
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17 + 9 + 1 + 1 + 9
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That is
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37 contacts
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I am shorting 37 contacts I'm also holding
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37 higher strike calls
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The 17 strike price calls
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are for the protection of my
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short calls
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We can analyze my risk profile of UNG here
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The horizontal axis is the price of UNG
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The vertical axis is the profit or loss
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If UNG drops to
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$6 then I have a
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maximum gain
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5000
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If UNG goes up to $20 or even $30
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I will have a maximum
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loss
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If I put a cursor here, you can see the maximum loss is about
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$22000
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This is very important
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It's better that you have a protection: the long calls
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I also have a hedge position UNL
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12 months Natural Gas
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ETF
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UNL and UNG are highly correlated, meaning that if UNG goes up
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UNL will also go up.
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You can see the plus sign here
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Plus sign means long. I long 1600
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shares of UNL
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If natural gas goes up
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I will have a loss in UNG
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But I will have a gain in UNL
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So in this case, at least UNL can
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reduce my loss
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I also rolled USO options to 100 days to expiration
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The reason is that
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The covered calls are deep in-the-money
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I do not expect I can make a lot of money on this position
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This position is like a cash position
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But I can still earn about 5% each year
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I can sell the 300 USO shares and close the covered calls
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Then I can get back the cash
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8000
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I also have positions in the silver ETFs
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I have in the money covered calls
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You can see the quantity
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0 here
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It's mean that I'm having working orders for these positions
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But they are not filled yet
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Let's go back to my VIX short positions
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VIX is the volatility index
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And I short
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naked calls
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SPY
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I have bought so many SPY puts
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The SPY puts are
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To hedge
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the VIX calls
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Because
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When VIX goes up very high
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I will lose money in the vix naked calls
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To hedge this position, I have to buy some
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SPY puts
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When SPY the sp500 ETF
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goes down,
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VIX goes up
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If VIX goes up, I will lose a huge amount of money here
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But because I'm holding SPY puts
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I will gain some money from the SPY puts
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This is the analysis tool
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of VIX
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You can put a symbol here
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The horizontal axis is the price of VIX
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The vertical axis is profit or loss
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You can see that if VIX goes up to 80
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I will have a loss about
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148,000
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Let's check SPY here
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If VIX goes up to 80, SPY will probably
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go down by 35%
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The current price is 390
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35% down is
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250 here
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The purple line, the first number
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means that today
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If SPY drops to 250
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I will have the gain
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120000
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The red line means that;
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You can see the date here
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The red number means that
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On that date
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On March 20th
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I will have a gain
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90000
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The reason is that
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After one month from February 20th to March 20th
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The SPY puts
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will have a loss of time value
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That's why
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I will have less gain in SPY puts
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This risk profile analysis is very powerful
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