Update from previous post: I was going to sell a cash secured put, but decided there was a decent chance that this is the bottom (~110) and didn’t want to miss the chance to buy at these levels. As a result, I bought 90 shares at $118 this morning, increasing my total position to 490 shares.
The next time I have some money to invest, I will probably be buying a different stock (INTC or FB likely) because this BABA position is very large and represents a huge percentage of my portfolio.
I recently realized I had some money sitting in a savings account at a credit union, as well as some extra money from teaching the last 2 months.
I don’t think holding cash is the right way to go due to inflation, so I plan to buy some stocks with the money. The only 3 stocks that I find at reasonable valuations (and that I’m familiar with) are BABA, INTC, and FB (in order of preference). I will likely buy another chunk of BABA next week, since I think the intrinsic value of the stock is ~$250 based off price ratios and other fundamentals.
BABA weekly chart below. I’m looking to buy a bit more sometime next week by selling put(s).
If INTC and/or FB have significant decreases in prices, I will likely buy some.
The BABA put I sold with a strike price of 140 for $9 expired today in the money, so I got assigned 100 more shares. It brings down my average a little bit from the high 130s to the mid 130s. My position size is now completed, but I plan to add small amounts when I have savings.
BABA daily chart below. It’s still in a massive downtrend.
I’m also buying a 1% of my account value position in STNE at market close. I like the company, it has solid growth in Brazil, and Buffett owns the stock. If it drops substantially (20-30% or more) from its current price, I plan to buy another 1% of my account value in the stock. Since the company has a decent chance to go bankrupt due to inflation / interest rates going up and political issues, I’m only willing to risk 2% of my account on this stock.
STNE weekly chart below. Buffett owns shares from Q4 of 2018 (~$20-$30 range)
I bought quite a bit more BABA at 111.96 last Friday at market close. Fundamentally I like the company, so it is now ~40% of my account value. I plan to add more as long as prices are below 150 anytime I have money saved. They recently announced that the CFO would be stepping down, which resulted in the stock price jumping.
Recently Didi stock announced that it would delist off the NYSE and list on the Hong Kong exchange. This might have spooked investors in selling their BABA shares. However, Didi shareholders can have their shares converted to Hong Kong shares. This means there won’t be forced selling which is likely why the stock has been going up the last few days.
BABA daily chart below. It is still a bit below my average purchase price in the mid 130s. I’m still holding the put I sold a few weeks ago. Although I’m not trading this stock based off the technical levels, the 150-160 range seems like a good range to sell if I were short term trading.
Let’s see what happens with these stocks for the rest of the week. It seems like there will be a lot of volatility.
The US market continues to hold up well despite the new Covid mutation.
SPY daily chart below:
Chinese equities continue selling off while the US market gains, and BABA has not done very well after their earnings report. My preference is for BABA to be higher than 140 by Dec. 17th (when the put I sold expires) so I can sell another cash secured put. Either way if it closes below 140, I’ll just have another 100 shares which is decent.
I bought a little more BABA last week Thursday at 143.6 (market close after earnings). I increased my total position by 10%. I also sold a cash secured put today when BABA was trading at 136.2.
I sold the 12/17/2021,140 strike put for 9 dollars. My original plan was to have a limit order at 130, but I actually like selling the put now instead.
BABA weekly chart below. BABA dropped over 11% last Thursday after a bad earnings report. They still project growth to be 20-23%, which still makes the stock cheap. I suspect we won’t drop much below 130, but let’s see what happens.
Hi everyone, sorry for the late post. Bad energy management on my part.
I don’t have any swing trades, but am still holding onto my investments (biggest position by far is BABA).
BABA weekly chart below. I plan to buy a little bit more this Friday as long as it doesn’t spike up on earnings Thursday.
My current strategy is to have a handful of stocks that I want to invest in, and whenever I have money available to invest, I will buy the one that has dropped the most short term. If nothing looks investable, I’ll either not invest any money or simply buy the SPY.
Markets look very extended short term, and I wouldn’t be surprised to see the indexes drop in the next week or two.
My INTC position is doing well, but the position was really small so not much profits there.
Since BABA has dropped quite a bit from its recent highs, I was planning on buying a small amount (<10% of current position size) if it gets to 150 because I have some income now. My bigger limit order is still at 130.
Markets grinded higher again this week, and futures indicate more upside next week.
I started a small position in INTC at market close on Friday (bought at $49). It is now 3% of my total account value, and I plan to have it be up to 15% of my account value if it continues dropping (next larger limit order at $45).
INTC weekly chart below:
BABA dropped over 7% this week, and I plan to buy more if it drops into my buy zone between 130-140.
The indexes made a new all time high this week, and INTC dropped a significant amount after their earnings report.
As a result, I can finally start my INTC long term position. The current plan is to have it be between 15-20% of my portfolio value. I’ll start with a 5% of my account value position at ~$50/share and add another 5% of my account value if it hits $45. The last add will be at $40 (or below).
INTC weekly chart below. It’s trading at a reasonable 11 P/E ratio and has an annual dividend yield of ~2.8%.
Let’s see what happens in the stock market next week.