How We Gained 11% WoW: MS, INTC Recoveries and Credit spread with NVDA
Apologies for the Silence, and Exciting Updates from the Journey
Hello OptionsBrew family,
First, let me start by apologizing for my lack of regular updates to the newsletter over the past two years. Life has been an exhilarating whirlwind, and I owe you all an explanation. During this period, I’ve been deeply immersed in building Terramatris, a crypto hedge fund focused on trading options on cryptocurrencies. It’s been an exciting venture that’s demanded my full attention, but I’ve missed sharing insights and updates with all of you.
Adding to the adventure, I just returned from an incredible month-long trip to India, a journey that refreshed my perspective and reignited my commitment to this community.
The Options Challenge: Growing a Family Portfolio to $100K
Back in September, I decided to embark on a simple yet ambitious project: to grow our family stock portfolio to $100,000 using options and dividends as the primary strategies. It’s been an incredible 18 weeks since the start of this challenge, and I’m excited to report that last week our portfolio reached $8,089.62. That’s a more than 11% week-over-week growth — a significant milestone in our journey.
The growth was fueled by a recovery in several options trades, which I can partly attribute to what I’m calling the “Trump Effect.” Let me explain:
I held a short $125 strike on MS, which was deep in the money just days ago. However, MS recently surged above $130, allowing us to regain some value.
Additionally, we saw recovery gains from short options trades on INTC.
Finally, after weeks of holding, I was able to get called away on a covered call on BMY, realizing a small but satisfying profit.
Recent Trades and Next Steps
Here’s a closer look at last week’s activities and our upcoming plans:
Bull Put Credit Spread on NVDA:
Opened a position with next week’s expiration.
The premium earned was used to buy fractional shares of NVDA.
Next Week’s Strategy:
Depending on the outcome of the NVDA options expiry, I’ll either roll the NVDA position forward or consider opening a bull put spread on BMY.
The challenge has been both rewarding and educational, offering plenty of opportunities to refine strategies while navigating market shifts.
Now that things are settling down with Terramatris and I’ve returned from my travels, I’m committed to being more present and sharing insights regularly. Expect updates not just on the $100K challenge but also on broader market trends, options strategies, and personal lessons learned from the crypto and traditional markets.
Thank you for your patience and continued support. I’m excited to re-engage with this wonderful community and look forward to hearing your thoughts and experiences as we journey together toward financial success.
Here’s to profitable trades and meaningful connections. Let’s make 2025 an incredible year for us all!
Warm regards,