04 Dec Model Portfolios and Options Trading Update – 30 Nov 13
It is time to update the performance of the model portfolios created by BigFatPurse.com. I will also update my options trading results in this article.
Model STI ETF Share Builders Plan
This Dollar Cost Averaging model portfolio is based on Phillip Capital’s Share Builders Plan. It started from Jan 08 and investing S$500 into STI ETF per month. As at Nov 13, the annualised return is 7%, inclusive of reinvested dividends. Read more about the portfolio details here.
Model Singapore Permanent Portfolio
The Model Singapore Permanent Portfolio has been flat for the past 2 years. It has recovered from a negative return when stocks, bonds and gold tumbled at the same time between May 13 and Jul 13. However, there wasn’t an opportunity to re-balance the portfolio despite the great drop in gold. Permanent Portfolio investors should be patient and wait for crises to present re-balancing opportunities – the returns will be higher when there are more re-balancing. The model Singapore Permanent Portfolio performance is tracked here.
It has been 5 months since I last disclosed about my options trading. How did I do as at 30 Nov 13? I had a very big loss (-US$9000) in Apr and I am pleased to get back to my original capital of US$60,000. I thought I would only make it back early next year, so anything before that becomes a bonus. I have tightened the risk management rules and it has served me well so far. Below are the monthly Profit and Loss since I started selling naked options:
- Jan: +$708.75
- Feb: +$883.12
- Mar: -$567.51
- Apr: -$9,072.49
- May: -$890.02
- Jun: +$1,333.13
- Jul: +$471.50
- Aug: -$112.50
- Sep: +$2,650.00
- Oct: +$3,333.13
- Nov: +$1,620.00
I would say it was a great learning year for options trading and I am glad paying some ‘school fees’ to the market. It allow me to respect the market more than ever. Going forward, I intend to put in more capital and scale up the exposure a little more. Also, I am exploring selling stock options over and above futures options. There will be further refinement to the strategy, adding divergence analysis to increase the win probability. Hope it all goes well for the new year!