Month: May 2019

Option trade diary #1 – ASML position 1

New series, as I stated in my option article newsflash post. I am going to mix it up. Talking about positions I take and why I take them. These posts are by no means advice , and should not be taken as such. It’s merely me taking you through my thought proces. Do your own homework and risk assessment at all times before doing anything !

ASML is a leading company in chip machines. Which is a highly cyclical business. It’s also one that is highly complicated and very expensive too enter. Hence when your at the top changes are you will be there for a while.

ASML has been one of my favorites for a lot of years now. I have bought the stock at first and as volatility is common I started writing put options. This time things are no different. Given the global trade war and attack on Chinese technology by the American president these are trying times. But in the long run this is only a minor hick up. As everything nowadays is technology driven it’s only a matter of time before things get back too business as usual. With these sort of ‘cyclical’ stocks the price fluctuations are always a bit over the top. Which has it’s direct influence on the option prices.

As I am long in any stock I own, I have written (sold) a put option for december 2022 with a strike price of 140 euro’s per share at a price of 19,05. Which means I received 1905 euro’s for taking te risk of having too buy 100 shares at 140 euro each. Why 1905 when the price states 19,05 ? Well 1 option contact always has the underlying number of 100 shares. So option prices should always be multiplied by 100.

I will sell this when it hits 25% profit, which means buying the option when the option price hits 14,27 (Rounded and including all transaction costs).

Why 25% ? , well what I have done is checking my historic options trading profit percentages and they on average run around the 25% mark. Which means that is psychological my comfort zone. I am not really good at letting my profits run, also these profits tend too be made in shorter time periods than my larger profits. Mostly in a matter of days instead of months. So my conclusion is I am a bit impatient and therefore this is my threshold for now.

Not very scientific maybe, bit then again it’s what I tend to do. So in order not too make things overly complicated I simply put the order in and don’t check it anymore.

First post on options and trading options new style. Will be interested too hear your thoughts and comments.
I will be making more of these as I am opening and closing positions, hopefully you will find my thought process interesting !

Option articles newsflash

Well I have been thinking a lot about my option article series, one representing the actual positions and another one explaining my option strategy and learning curve. I have decided on stopping with the overview. It’s not really teaching anything and I was struggling on getting all the information in a readable format. As such it was just a spreadsheet with some of my gains and losses. While these can be interesting , my current way of thinking is I will post a blog as soon as I enter a position with and explaining why I think it’s a good idea.

Not as an advice that anyone should follow, just showing my thought process presented by a real life example. This combines the two article series in a more learning focused way. And it will save me a lot of hassle presenting large spreadsheets in a meaningful way.

Hopefully these adjustments will help the articles along.

April 2019 – Dividend

Another month passed by quickly. And so it’s time for another dividend update. This month and the next are always big on dividend coming in. This year is no different. It’s also got a few decent increases within the payments which is a nice bonus. Although this is exactly what is supposed too happen, it still feels as a bonus.

Mind you it can also go the other way round. Dividend payments can stop just like that and stock prices can implode as well. The last decade has been amazingly good. So for all of you who are just starting out. Have a long focus and don’t be deterred when things go sideways. Because they will at some point in time.

For now we are enjoying a nice ride, so here are the results for April :

DateStockCurrencyAmount
25-04-2019Ahold DelhaizeEUR70,00
24-04-2019Cisco systemsEUR8,75
16-04-2019WP Carey Inc. REITEUR9,21
15-04-2019NedapEUR50,00
10-04-2019Vanguard FTSE All-WorldEUR57,71
02-04-2019Vanguard Dividend AppreciationEUR1,36
02-04-2019NikeEUR1,96
01-04-2019Coca Cola CompanyEUR8,03
TotalEUR207,02

Dusseldorf marathon 2019

After a week of absolute rest, or to be more precise physical rest , the nerves were breaking havoc, it’s finally time to travel. Dusseldorf marathon here we come. Not running for a week is always strange and feels uncomfortable. If I am not running processing day to day events and input becomes a lot harder. I function quite a bit less than when I am running. So I have to adjust everything. Do less. That’s always a bit of an adjustment.

De trip was excellent, The ICE takes you too Dusseldorf in no time, an easy relaxed and comfortabel way of traveling I can highly recommend.

Weather forecast was promising during the week ahead and kept on getting beter. On the day itself it was dry and chilly at the start. Because the new half marathon start got delayed so dit the main event , the marathon. So another 15 more minutes keeping yourself warm. I felt a bit stiff while waiting but that was just nerves I guess.

The waiting went pretty fast and it was time for the start. During training it was pretty clear my sub 3 hour marathon was a bit of a stretch for now, but the pacers for sub 3 hours had a slow start and I felt pretty comfortable in this group.

The first kilometer was done in 4:30 so that was fine, I just stuck with this bunch and that went well. It was pretty cold during the first 7 kilometer en sometimes I felt pretty cold myself. The pace went up slowly and probably too fast for me between 10 and 15. But it felt very good and I decide not too slow down and decent towards the 3:15 pacers. Sub 3:15 was a time I could aim for based on training results and general fitness level. Which would mean a small improvement of my personal best.

But I ran very easy and it was time for a bit of a gamble. Let’s see how far I can take this and stay with this sub 3 hour group. The half marathon mark was passed in 1:28 so perfectly on target for just under 3 hours. But as everyone knows. A marathon starts at the 30 kilometer mark. And so it went, after 30 the pace started taking it’s toll. Also the gels didn’t go in very well. Normally it doesn’t matter which brand , flavor or whatever I take it’s never a problem. That’s why I never take my own. All the solutions for taking them along just irritate me. And the gels which the organizations give out normally work fine.

Not this time, they made me a bit sick. So now I had too rely on Iso drinks, water and bananas. Works as well just not as fast. At the 35 mark I was well and truly drained. No more energy and I had too walk at one refreshment post and make sure I took my Iso drink the right way. My lap times between 35 and 40 deteriorated a bit and weren’t as fast anymore.

It takes a lot of effort just getting too move forward, or so it feels, maybe it looks that way too. It’s at that point in the marathon I simply stop watching the lap times and pace on my watch and focus strictly on the running part , just keep running. The kilometeres go by and the signs on the road counting down, 5, 4 , 3 ,2 ,1 kilometer too go are unmissable here in Dusseldorf so hat helps a lot. It gets you thinking in kilometers instead of the bigger numbers.

At the 40 mark I felt better and the finish line started pulling. The final stretch on the Koningsallee and then on to the waterfront. At one point you make a slight turn and then run down towards the bank of the river with a nice view on the finish clock. At that moment it said 3:08 and change. At that moment I wanted too cross the finish line under 3:10, and I was going for a final sprint. Which didn’t feel like sprinting at all. 3:09:25 it was. I should have crossed the line cheering and jubilant , but I was simply happy just crossing. The final kilometers were very hard, and maybe because of my fast pace in the beginning. Then again if I had started out slower and try keeping it flat during the race and the energydip had come along I never would have crossed the finish under 3:10.

It has taken me a few days in realizing this new personal best and all the race day impressions. But I am stoked with the result. I’m very happy indeed.