Investment Diary

Anti-AI bubble strategy phase 1: Enhancing the underwater in my holding stocks. It been a few months since I started finding ways to cushion a potential AI bubble for my portfolio. Starting from the basic is, the moats of the businesses in my portfolio will helps to better understand what I'm expecting before the storm comes. I’m holding lot of AI stocks so the risk of AI bubble is high.  In my portfolio, I noticed SP Global has predictable revenue in both good or bad times due to  legal monopoly business, which make their customers face  higher switching cost . The stock price has been dropping since rate hike, but cash flow and operating income remain solid despite the AI disruption sentiment. Compare to historical rate hikes period SP Global performing well overall maybe is a good time to add more during this discounted season. I will start phase 2: searching for non-AI businesses during the bloodbath when SP Global carry 15% allocation while setting cash asid...

If you are bullish long-term bullish on a stock yet cannot afford to own a 100 shares of stock, you can consider DITM call option in long theta ( at least a year ) to enjoy slow decaying. There are many benefits for doing this like improving your investment cashflow, enjoy ROI and reducing capital risk. How option price derived:          An option’s price (premium)= Intrinsic value + Time value (Extrinsic Value) Most of the option’s value comes from intrinsic value not time value. A stock price at $200, a DITM call option at $150 means intrinsic value is $50 . Typically from 80- 90 delta for options moves 1:1 with stock movement. DITM have minimal time value because their outcome is almost certain. The time value shrinks to $0 because market speculation decreases as expiration approaches. Long theta means lose less value per day, barely time premium to erode. Long theta is your friend!   Pick a long theta and choose right delta:    ...

  Happy National Day! Singapore is celebrating 61 years its Independence Day. It never been an easy journey to where we are now, a country without nature resource, neighbour conflict and etc. Maximising manpower is the only solution; establishing strong military for peace, strict legislation anchoring fairness and an open economy, and constantly improving education systems for next generation stays relevant for their future. We thank our forefather built a peace and prosperity through blood and sweat for us. Majulah Singapura! How do I feel the Singapore market? I think Singapore is beginning to shape things up on attracting wealth inflow as its proof to foreign capitalists that we are neutral yet resilient on various crisis such as pandemic, oil, aging population, wartime ready, financial crisis and etc that most of the countries cannot address. Not only crisis-ready, we are also business-friendly, lower corporate tax with grants and incentives, attracting diversify foreign ...

  Minutes of FOMC Meeting I read the Minutes of FOMC Meeting to understand what is happening in current economic and I found interesting some pointers in this Minutes was AI Capex has no signs of slowing which I agree with participants that it will improve productivity to the companies embraced AI however it also affected some classes of workers. The current labour market results are stable however with current AI Capex, it takes time to show the result of ROI it might be a slowdown on hiring if deployment is successful. SPGI completed separation of Mobility Global Inc SPGI consist small part of my US portfolio, recently there was a spin-off activity on this company. SPGI decided to separate Mobility Global, a world's standard for automotive information, providing critical data and analytics across the full vehicle lifecycle. Its portfolio of trusted brands and products includes CARFAX, automotive, Mastermind, Polk Automotive Solutions, and Market Scan, supporting the world...

The best opportunity to own a growth stock is when the company’s share price is suffering a deep dip but fundamental unshaken. If we consider using wheel strategy by doing sell-put options using deep- OTM (Strike Price= Current price - 20%)  and setting a short-term expiration date(7- 60 days); collecting upfront premium while waiting share price drop below strike price assigned to buy the stock at the discounted price but if the stock price still above the price we can continue to restart sell put and collect upfront premium again. How option price derived: An option’s price (premium)= Intrinsic value + Time value (Extrinsic Value) As a seller direction:         Extrinsic value= Theta (Time Value) + Implied Volatility        Strike price less than Stock price is Out-Of-The- Money (OTM) ( No intrinsic value )        Sellers: Generate income from selling Time value Time value affects the premium of the opt...

  What is Bull Put Spread? In trader view, Bull Put Spread is considered a moderately bullish (Neutral to bullish view) . You think the stock reach ‘bottom’ and won’t drop lower. The best time to exercise BPS when there an uptrend or chopping sideway. Profit potential is generally limited and depends on the share price remaining above the sell-put strike price at expiry. How Bull Put Spread works? Sell Put + Buy Put = Bull Put Spread Strategy consists of selling put option while buying put option at a lower strike price to help define risk exposure. While the long put (buy put) may help limit downside risk, losses can still occur and options strategies may not be suitable for investors. Using vertical spread at same expiry date and both options must be Out-The-Money (OTM), Zero Intrinsic. Example Spread width: $210 (sell put) - $200 = $10 Total premiums: $0.93 - $0.17 = $0.76 Max loss for 1 contract: ($10 - $0.76) x 100 shares = $924 Max gain for 1 con...