Choppy markets makes for a busy time adjusting naked puts ahead of options expiry and a few assignments more than desirable
Portfolio News
In a week where S&P 500 rose 0.32% and Europe dropped 0.78%, my pension portfolio dropped 0.24%. Drags were lithium on ASX and in US (e.g., Latin Resources (LRS.AX) down 7.5%), ASX listed uranium stocks, Japan with two thirds of holdings down, and in the US, Fiverr (FVRR) down again and altenate energy stocks. Doing the lifting were nuclear power (see the big movers list below) and Europe, surprisingly.
Big movers of the week were NANO Nuclear Energy (NNE) (67.9%), Anagenics (AN1.AX) (33.3%), Sun Silver (SS1.AX) (24.2%), NuScale Power Corporation (SMR) (22.3%), IsoEnergy (ISO.V) (16.7%), Tyro Payments (TYR.AX) (16.5%), Atha Energy (SASK.V) (14.9%), Anfield Energy (AEC.V) (14.3%), Titan Minerals (TTM.AX) (13.9%), Sigma Healthcare (SIG.AX) (12.5%), Pepper Money (PPM.AX) (11.7%), Kairos Minerals (KAI.AX) (11.1%)
A short list of 12 big movers with 3 big themes showing - alternate energy (3 stocks), uranium (3 stocks) and gold/silver mining (2 stocks). 2nd week in a row for the top mover - more information about small modular rectors below. Encouraging also is movement in the smaller uranium stocks - something is brewing in the Athabasca basin.
With only a few earnings moves and a holiday for Juneteenth in the middle of the week, US market was a bit choppy. Feels like a bit of rotation beginning with profit taking on Nvidia (NVDA) heading back toward the Dow Jones stocks
Crypto Tumbles
Bitcoin price continued the slide of the last two weeks ending 4.8% lower with a peak to trough range of 7.5% - and still falling. Chart shows a resistance level from previous highs some time back that was broken on the way down. There is another around the $60k mark
Did some digging to explore the side. Two sources of Bitcoin coming into the market expected to crunch demand - German confiscated Bitcoin and Mt Gox administrators agree to pay out in fiat - get to sell the Bitcoin to raise the fiat.
Ethereum price did much the same but tried to rally mid week off the previous lows but failed too ending 4.5% lower on the week with a trough to peak range of 7.9%
NEM (XEM) found buyers off the lows with a pop of 31%. There may be a liquidity issue as chart comes from Poloniex exchange after the delisting of XEM on Binance from June 17.
Hive (HIVEBTC) has been tumbling all year (and before) dropping 65% thus far - found some buyers off the lows with a 31% pop.
Uranium Holdings
Two week update on uranium moves after messing up last week's data. Portfolio went up with a few adds and is now 13.6% of portfolios (was 13.2%). Valuation was down 3.2% in the tow weeks, but did recover a bit of what was dropped in the first week.
Mix of holdings shows three changes with IsoEnergy (ISO.V) swapping places with Denision (DML.TO) and Sprott Junior Uranium Miners (URNJ) coming into top 10 on the back of options assignment. Lastly, Paladin Resrouces (PDN.AX) swapped places with Cameco Corporation (CCJ) and drops out of the Top 10.
The momentum news of the week
was the US Department of Energy announcing a $900 million injection
into developing small nuclear reactors — a shot in the arm for the industry as the Senate prepares to vote on a bill to boost the Nuclear Regulatory Commission’s capacity to license the technology.
DOE projects that the country will need anywhere from 700 to 900 gigawatts of additional clean, firm electricity capacity to reach net-zero emissions nationwide by 2050.
That news propelled all 3 of the portfolio investments to big movers list (and one to assignment on covered calls)
https://www.eenews.net/articles/doe-floats-900m-to-build-advanced-reactors/
Breaking news at the weekend was Niger revoking Orano's licence at its Imouraren uranium mine - citing failure to commence developemnt by June 19. This move has the uranium world speculating whether the move signals a realignment of Niger with Russia and China.
Bought
Wynn Resorts (WYNN): Gaming. Assigned early on sold put (part holding). Wrote covered call for 1.56% premium with 2.8% price coverage. Been a solid investment and income source writing options.
JinkoSolar Holding Co (JKS): Solar Power. Assigned early on sold put. Wrote covered call for 0.43% premium with 37.7% price coverage. A long road to recovery - the climate change agenda will bring this back on track
Added a few uranium stocks to pension portfolio on a down day - all from the Uranium Insiders core list.
enCore Energy Corp (EU): Uranium. South Texas ISR feeding reopened mill. Price has come off 23% from the early 2024 highs
Chart shows price testing down to 200 day moving average (the green line) and failing in first attempt to recover. That level coincides with the bottom of the parallel channel established since those 2024 highs
Next chart plots the 3 uranium purchases together going back to March 2023 lows. NexGen (NXE) and EnCore are moving inline. The laggard is F3 Uranium - close half that gap will offer a good return.
F3 Uranium Corp (FUU.V): Uranium. Keen to capitalise on the upcoming spin-off of F4 - not been able to find the record date but transaction is expected to be completed in Q3 2024. Athabasca Basin explorer.
Chart shows price raced ahead when uranium stocks started to move in early 2023 - and then stalled sideways in a choppy uptrend before falling away from the early 2024 highs. Recent price action is positive while the rest of the sector has been negative.
NexGen Energy (NXE): Uranium. Set up a 7/8/7 call spread risk reversal to explore short term moves in price. Bought September expiry 7/8 bull call spread for a net premium of $0.39 offering maximum profit potential of 159% if price moves 13% from $7.08 opening price (Jun 21). Funded the premium fully by selling a July expiry 7 strike put option with 1.1% price coverage. Quite happy to load up stock at $7.
Let's look at the chart which shows the bought call (7) as a blue ray and the sold call (8) as a red ray and the sold put (7) as a dotted red ray with the expiry dates the dotted green lines on the right margin. Price scenarios are from short upward spikes in price - there are a few of those in the last 12 months. Only need one such move and trade will reach the maximum. The sold put (7) is around the level of the lows when the last consolidation phase began in early 2024.
[Means: Call Spread Risk Reversal. Buy a bull call spread and fund the premium by selling an out-the-money put option below the strikes for the call spread]. Note: This trade uses the same sold put as the bought call level. Not normally done this way.
A seriers of trades assigned on sold puts:
Commerzbank AG (CBK.DE): German Bank. Breakeven after 3 months of naked puts at €14.04, a little higher than €14.03 close (Jun 21)
Deutsche Bank AG (DBK.DE): German Bank. Breakeven after 3 months of naked puts at €14.28, 1.2% lower than €14.46 close (Jun 21). Europe banking stocks were all dragged lower by the European Parliament election results the weekend before. Happy to be invested for the long run.
ChargePoint Holdings (CHPT): Electric Vehicles. Breakeven after 1 months of naked puts at $1.39, a little lower than $1.42 close (Jun 21)
Bankruptcy of Fisker this week does not bode well for Electric Vehicle stocks with Chargepoint falling 19.5% on the week.
https://finance.yahoo.com/news/massive-bankruptcy-news-crushes-ev-205118886.html
Fiverr International (FVRR): Internet Services. Breakeven after 2 months of naked puts at $22.01, a little higher than $21.98 close (Jun 21). Using this trade entry to average down entry price in managed portfolio - original holdings are well under water.
Chart shows price has broken the downtrend a few weeks back with the moving averages (20, 500 and 100) almost stacked in the right order. The lower support level (green line) comes from way back and has held a few times.
Sprott Junior Uranium Miners ETF (URNJ): Uranium. Assigned on sold put leg of 29/28 risk reversal. Breakeven after all options trades is $25.40, a 3.2% premium to $24.61 close (Jun 21). This is a trade for the long haul.
ABN AMRO Bank N.V. (ABN.AS): Dutch Bank. Breakeven after 1 months of naked puts at €15.71, a little higher than €15.44 close (Jun 21)
QuantumScape Corporation (QS): Battery Technology. Breakeven after 3 months of naked puts at $4.62, 6.3% lower than $4.92 close (Jun 21)
Chart compares the two EV stocks assigned with one of the EV ETFs (KARS - the bars). QuantumScape (QS - dark blue line) is somewhat in line while ChargePoint (CHPT - light blue line) looks like a basket case
Star Bulk Carriers Corp (SBLK): Shipping. Breakeven after 1 months of naked puts at $24.18, a little higher than $24.10 close (Jun 21). Replaces stock assigned in May 20224 at same strike. Dividend yield 12.45%
L'Air Liquide S.A. (AI.PA): Specialty Chemicals. Assigned on bought leg of a credit spread. Breakeven, after 6 months of credit at €155.74, is 4.8% lower than €163.64 close (Jun 21). Allowed this spread to go to assignment as this holding replaces holding in Linde plc (LIN) sold last week - an investment in the hydrogen economy. Dividend yield 1.79%
Sold
Rolls-Royce Holdings plc (RR.L): Defense/Aerospace. Assigned on covered call for 10.2% blended profit since April/May 2024. Do have sold puts in place to find new entry points - Rolls Royece is moving as an SMR idea.
Marathon Oil Corporation (MRO): US Oil. Assigned on covered call for 1% blended profit since April/May 2024.
ASX Portfolio
The segment reports trading in ASX fractional share portfolio. Trade entries are made based on stock screens looking for undervalued stocks (price to book, price earnings, price to sales) that are showing technical signs of breaking a downtrend. Exits are made at 35% profit or 25% if 52 week high is lower than 35% advance. New buys are in $400 lots. Scale ins and top ups in $200 lots
New Buys
Solvar Ltd (SVR.AX): Financial Services. Dividend yield 9.09%.
Chart shows price breaking downtrend and holding support a few times. No more rate rises will help.
Sold
Silver Lake Resources Limited (SLR.AX): Gold Mining. Acquired by Red 5 Limited (RED.AX) creating a larger mid-tier gold mining business. SLR shareholders own 48% of the combined entity
Shorts
Pfizer Inc (PFE): US Pharmaceuticals. Pressure is building for a court case against Pfizer about the safety of the Covid-19 vaccinations. Pfizer are confident this case has no basis - there will be more
Put in place a September expiry 27.5 25 bear put spread to take the next go at shorting the stock. Did that as a ratio spread but not quite fully funded. With a net premium of $0.49 trade offers maximum profit potential of 610% for a 9.9% drop in price. As the spread is a ratio, it is important that price does not drop more. Will sell the long Pfizer position in the coming week.
Hedging Trades
VanEck Vectors Gold Miners ETF (GDX): Gold Mining. Assigned on sold put. Breakeven after last 2 sold puts is $33.09, 2.6% lower than $33.99 close (Jun 21)
Barrick Gold Corporation (GOLD): Gold Mining. Assigned on sold put. Breakeven after last 3 sold puts is $15.59, 5.9% lower than $16.56 close (Jun 21)
Cryptocurrency
Uniswap (UNIBTC): Partial exit at 50% profit target since April 2024.
Chart shows a sideways move for a few weeks and then 3 cycles on the uptrend with the last one breaking the previous two highs.
Income Trades
Covered Calls
Sixty four covered calls went to expiry across 3 portfolios with one assignment (shown in brackets) (Aus 2, UK 3 (1) Europe 9 US 50)). One assignment also in personal portfolio - not in this tally
Naked Puts
20 naked puts went to expiry with 9 assignments - there were a lot kicked down the road (Europe 3 (3) US 17 (6)). \
Kicked a few sold puts down the road. The thought on Europe is prices will recover some of the panic once the French Elections are over.
ABN AMRO Bank (ABN.AS): Dutch Bank
Société Générale (GLE.PA): French Bank
Volkswagen AG (VOW.DE): Europe Automotive.
Global X Lithium & Battery Tech ETF (LIT): Lithium.
Sprott Junior Uranium Miners ETF (URNJ): Uranium. - not far off the sold strike but not keen to commit the capital just yet
NexGen Energy Ltd. (NXE): Uranium. 43% profit on buy back. 291% cash positive
Chose not to do this for the German banks in the pension portfolio - did do it in personal portfolio as it is tight on margin.
Added a few sold puts on stocks hapy to own at lower entry points.
- Lightbridge Corporation (LTBR): Nuclear Technology. Return 10% Coverage 2.4%
- CleanSpark (CLSK): Crypto Mining. Return 8.4% Coverage 2.2%
- NuScale Power Corporation (SMR): Nuclear Technology. Return 5.9% Coverage 16.3%
- iShares 20+ Year Treasury Bond ETF (TLT): US Treasuries. Return 0.9% Coverage 1.3%
Credit Spreads
L'Air Liquide S.A. (AI.PA): Specialty Chemicals. Broker liquidated one short put - 73% profit on the buy back. Drops the ROI to 15.3%. The other was assigned.
Credit spreads on Axon (AXON), Labcorb Holdings (LH) and Universal Display (OLED) in managed portfolio all expired with an average ROI of 26.8% - all TSP ideas - not bad work for a month.
Exercise risk after the adjustments is challenging in the pension portfolio - will be making some sales to lock in profits to release margin or closing down some sold puts - need a few up days for that.
ResourcesCautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers. Crypto tickers come from TradingView
Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices
Investing: Interactive Brokers provides comprehensive global markets coverage with very competitive commissions. Open an account to earn up to USD 1,000 in IBKR stock. https://mclnks.com/ibkr
Crypto Trading: Binance offers a wide range of coins to trade, tight spreads and low fees if you use BNB to pay https://mymark.mx/Binance
Kucoin offers a wider range of altcoins than many of the other exchanges. I do like to diversify my holdings in case an exchange gets knocked over. Grab 15% discount on your trades when you open an account on this link https://mclnks.com/kucoin15
Gate.io offers a solid range of coins many of which have been delisted elsewhere. Have chosen to share the commission rebates. 40% is the rate - split 30% for me and you get to keep 10% for any people you invite. https://mclnks.com/gateio
Tracking: Keeping track of your crypto trades is a whole lot easier with CoinTracking.info. Get 10% off all your account upgrades https://mymark.mx/CoinTracking
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June 17-21, 2024
Damn!!!
HiveBTC is really low. Well, a time to recover will come and it will surely be ina huge way!
Keep posting and curating and holding for the long haul. That reversal might be the key on a tough week for Bitcoin
#hive #posh
The ups and downs in uranium and alternative energy really highlight the volatility of it. I'm getting curious of how the uranium market will develop with recent geopolitical shifts brother.
Keep reading. Ignore the volatility. Traders watch the spot price which has very low volume. The economics are about a building supply deficit from 2028 onwards. How to start investing? Trickle spare dollars into Sprott Junior Uranium Miners (URNJ). Then research the Top 15 holdings in that ETF to pick one or two stocks that are ready to produce in 2028. Pick 2 and trickle into them - one in US and one other.