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MY STORY

Moving into Options

COVID-19 PANDEMIC

I had began buying options in December, and by March 19th, right after the Covid-19 Pandemic had began ravaging the stock market, my account sat at $3842.17

The pandemic wiped out the unrealized gains, and this is when I chose to not sell anything.  I was holding calls that were a few months out, and I felt that recovery would come sooner than expected.

By April 16th, I had regained my unrealized losses and began my climb upwards out of the pandemic, sitting at $6,050.13.

Warren Buffett said, "Be fearful when others are greedy, and greedy when others are fearful," I chose to scrape as much money together as I could (including a $1,000 loan from my brother, thanks man), and put it all into the wrecked market.

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GROWTH AND STRATEGY

As I began to better understand what Calls meant, I added as much cash as I could muster, and I reinvested my early call flips into a new company, JD.com, which has been my largest winner by far.  The combination of added capital and gains left me with a total of $11,736.82 on May 6th, 2020.

At this point, over the course of the last 20, I had invested around $10,000 in slow increments.  I mainly added when I found a position I really liked, then added the amount to buy just that Call.  This is also when I shifted 90%+ of my account into calls, and tried out using margin.  Margin is borrowed funds from your broker, I use Robinhood, and the interest is 2.5% annually on what you are borrowing.  If you have Robinhood Gold, you can use $1,000 of margin without paying interest for $5 a month.  Don't use margin unless you understand what you are doing, don't get yourself into trouble.

After moving the majority of my money into calls during March, the returns out of the pandemic were crazy, I did not add much cash during the next phase (A couple hundred if I could squeeze out a few more calls), it was more of a "sit and wait to see what happens with this COVID-19 thing," period, and on June 8th, 2020, I was trading $63,811.68.

This was when the market volatility started to hit my account, and the unrealized gains and losses were enough to make anyone feel like they were on a roller coaster.

My Story - Options: Services
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