February 2019

General Comment

Trapped?!

Pretty much like January, February was a rather calm month, a decent month of growth for financial markets all around the spectrum.

If you follow this blog you’ll know that my view on 2019 is a neutral/negative one, and this is the main reason why I have decided to adapt my option strategy to reflect this belief.

If markets are to tumble a little like it happened in December 2018, then the strategy will pay off, otherwise it will pose questions on how to manage trades that went against me.

In any case the defensive approach that I have taken should protect me from unforeseen losses that might materialise on the derivatives front.

Back onto the normal stock market, there is little to say. Brexit has not been called yet, looks like we are now going for a second referendum, but everything is pretty much up in the air. Trump is still talking (errrr… talking?) with China and North Korea, but nothing serious has come out of these talks, while Europe is gearing up to the elections in May and it seems that the campaign has started already, well in advance.

The reality is that February, did not bring any decent change in the status quo, and markets love this… No news good news, after all.

The LH FUND proceeds in a good way as a result, let’s see what we’ve done this month!

LH FUND

Explanation of terminology and graphs is HERE.

Let’s see the numbers:

MonthTRYTERNYYoCForex
12.140.00%0.00%0.00%0.00%
12.15-3.33%1.22%-0.13%-1.00%
12.167.06%1.14%1.16%-4.35%
12.179.94%1.04%2.64%-5.94%
12.183.28%1.24%2.70%-3.53%
1.199.76%1.26%2.69%-2.75%
2.1912.02%1.24%2.69%-1.95%

Net Yearly YoC is neutral (vs. previous month) – Not a great result, because it comes from slower earnings on the dividends and option side.

TR is increasing (vs. previous month) – Markets are up and so is the portfolio TR%. February 2019 is now the new record in absolute terms for the PF.

Forex is getting better (vs. previous month) – Dividends and options are mitigating the currency effect on the PF. This increases potential Total Return as well. All under control I’d say.

YTER is decreasing (vs. previous month) – Not a lot of action recently, if things stay like that for the rest of the year I expect TER to fall much more (which is good news of course!)

Dividends and Options

While I expected January to fall behind 2018 result, I did not expect February to follow suit. Alas, albeit from a small amount, February saw another negative comparison with last year, nothing special or worrisome, but something I could have done without. As usual it’s a story of two different sides of the coin, let’s take a closer look…

February ended with a 826 Euro result.

Dividends accounted for 800 Euro (+47.58% vs.2018) and Options ended up with a 27 Euro score (-92.56% vs 2018).

Let’s see what got us to these results…

Dividends are massively on the rise, that’s a very important piece of news. Seeing the aggregate result one might think that the strategy is not paying off anymore, but this month is not the case. Options lagged massively behind last year result, but as I am switching to a more defensive approach that is something that will stay with us all year I believe.

List of Options closed in January

DCA/Increased Positions

Nothing to report

New Positions – Sold Position

Nothing to report

Conclusions

February has been really quiet, still I was able to rack some dividends, increasing my liquidity for future moves. There are some interesting stocks that I’d love to buy right now, but I either do not have all the cash that I’d like to have, or I am not finding the right entry points on them. I am sure that other months will bring more drama to the Portfolio, let’s hope I’ll be ready by then to make some interesting moves!

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3 thoughts on “February 2019

  1. Salve Stalflare perchè non mettere sul foglio opzioni che base hai venduto ed a che livello si trovava il sottostante così si capirebbe pure a che livello hai venduto l’opzione se era ATM o OTM.
    Buon lavoro

    Like

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