Thursday, 6 October 2016

Sept 2016 Portfolio

Hi guys,

For the month of September, things were pretty hectic as I had to complete 3 essay assignments and managed to complete 1 practical test while preparing for a presentation during the first week of October. Overall, I felt pretty confident that this semester would be awesome as well.


In September, there were no transactions made in the SGD account but cost basis reduction strategy has been constantly applied in the US market for GILD. There were also some contracts in the S&P futures which turned a profit helping to bring back the account.

My current SG holdings include:

1)      ACCORDIA GOLF TRUST 
2)      LIPPO MALLS INDO RETAIL TRUST 
3)      AIMS AMP CAP INDUSTRIAL REIT
Overall capital gain is +5.19%
Overall P&L with dividend is +9.83%


Investing Wolf 
Disclaimer: This is not a recommendation to buy or sell any mentioned stocks or securities in this blog. 


2 comments:

  1. How do you make use of cost basis reduction strategy for Gild in your portfolio, don't mind sharing, would like to hear your opinion..

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  2. Hi Ren, the basic cost reduction strategy consist of selling 1 call options for every 100 shares of the position you currently hold to reduce the cost of your initial price.

    E.g you purchase 100 GILD shares @ $80 and it has dropped to $75. You do not want to sell the shares, so you sell 1 contract of 80 Oct 16 call option for $1. You have effectively reduced your cost basis to $79.
    There are 3 senarios:
    1) If the call option is not exercised you can continue to sell the contract for the next month to reduce the cost.
    2) The option is exercised and your stock gets called away for $80. You managed to earn $100 from your initial losing position.
    3) you can buy back the call option if you still want to hold the shares. (not recommended as it incur more losses)

    Best is senario 1 as you can continue selling call options until the initial cost has been reduced to $0 and whatever you sell thereafter would be your entire profit, and selling the shares you result in you doubling your investment.

    That's 1 method of cost reduction strategies. Hope that helps.

    ReplyDelete