TIB: Today I Bought (and Sold) - An Investors Journal #531 - Swiss Bank, Steem, Hive

in LeoFinance3 years ago

The fallout from shakeout of Archegos Capital Management and a huge pump in STEEM are the trade actions for the week.

Apr2Trades

Portfolio News

US markets touch a new high in holiday trade on Thursday despite a softish private payrolls report. Non farm payrolls reports published on holiday Friday points to a stronger print which is pushing Asia and US futures higher for Monday trade - Europe trades Tuesday.

Apr1News

In a week where S&P 500 rose 1.17% to reach an all time high, my pension portfolio rose only 0.28%. Biggest individual drag was De Grey Mining (DEG.AX), followed by oil shipping stocks and Japan and UK.

Big movers of the week were 88 Energy (88E.AX) (+135%) - more news on Alaskan oil finds, Fremont Petroleum (FPL.AX) (+100%) - based on natural gas deals in US, Livent Corporation (LTHM) (+10%) - shows some life coming back to the sector.

Crypto booms

Bitcoin price kept pushing higher (+7.6% to the week's peak) and then lost steam in mid week and ended the week marginally lower.

Apr3BTC

These quiet weeks are the time for altcoins to move - Ethereum makes an all time high. Polkadot surged 43% but lagged EOS up 57% for its weekly high. All were dumped back a bit.

Apr3STEEM

Star of the week in my portfolios was STEEM - I wrote last week that it was pumping - it kept going for a while and then dropped back.

Bought

Credit Suisse Group (CSGN.SW): Swiss Bank. Credit Suisse reported exposure to the Archegos Capital Group margin calls to Swiss National Bank - price was smacked 16.7% from Friday close.

Mar29CSGN

I increased my holding to average down the entry price I made last week. I hold Credit Suisse for the long haul based on its relative under-performance to UBS Group (UBSG.SW) - a dip like this looks like opportunity to me. With a growing wealth pool and rising savings rates through the pandeomic, wealth management is not a bad place to be. Dividend yield 5.47%

In another portfolio I started a new position. Price continued to slide in the week and I averaged down this new position and sold covered calls at 2% premium with 7% coverage to SFr9.90 closing price - the sold strike is lower than the initial purchase price. I am figuring this is going to take more than 4 weeks to recover as the story unfolds.

I cannot resist the urge to look for leveraged opportunities - I constructed a call spread risk reversal. At the time of setting up the trade, price was trading around SFr10.50 - I bought a December 2022 11/14 bull call spread for a net premium of SFr0.75. That offers maximum profit potential of 300% for a 33% move in price at trade time (now 41% from the lower closing price). I funded the net premium fully selling a December 2022 8 strike put option. That is a further 23% below the close and close to 40% below the levels before the collapse.

Mar31CSGN

Let's look at the chart which shows the bought call (11) as a blue ray and the sold call (14) as a red ray and the sold put (8) as a dotted red ray with the expiry date the dotted green line on the right margin. The sold call (14) is just above recent highs and the levels reached before the pandemic collapse. The sold put (8) is below the lows of the last consolidation but it is above the pandemic lows.

I previously modelled price scenarios (pink arrows) from the European Debt crisis lows. The middle pink arrow was placed at the time I set up a bull call spread in late 2019 - it was derailed by Covid-19. Applying that to the March 2020 lows, we see that price was on that trajectory. I have now added in a blue price scenario arrow - get a repeat of that and this trade will be a comfortable winner.

I have put in the net price for the trade (dashed blue ray) - the sold put brought premium down to a discount of SFr0.15. [The sold call 18 in the image is a remnant position from a 2019 set up.]

Sold

No sales

Cryptocurrency

STEEM (STEEMBTC): When Tron took over Steemit Inc, I started the process of powering down my SteemPower (SP) so that I could transfer STEEM away from Steemit wallet and sell for something else. STEEM price has been on a rocket ship these past few days - so I started the process of exiting. Chart shows STEEM vs Bitcoin. I have been waiting for this move to exit.

Apr1STEEM

Process is to transfer out of my Steemit wallet to an exchange (I use Bittrex) and then sell for BTC - first of those trades made. As I have a lot of STEEM I have chosen to do it in tranches (will do it in 4 goes)

HIVE (HIVEBTC): Hive price pulled back while STEEM was still rising - perfect time to do a switch

Apr1HIVE

Bought 5,000 Hive and transferred to my Hive wallet and powered up. I will think about how much more I want to power up once I explore some staking and farming ideas with the released STEEM.

Income Trades

A quiet week for income trades across two portfolio with only 4 covered calls written (1 UK 2 Europe 1 USA) and one naked put (Europe)

Currency Trades

No trades

Cautions: 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. Alaska flag image is Creative Commons https://creativecommons.org/licenses/by-sa/3.0/deed.en 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

Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices

Bitcoin: Get started with mining Bitcoin while price is so high http://mymark.mx/Galaxy

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

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

March 29 - April 2, 2021

Posted Using LeoFinance Beta

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Hey, great post ! Do you think hive will bounce back to 0,70 next days ? Cheeers !

Thanks for the upvote and the comment

I do not make price predictions with timelines on them. I watch the charts. I also prefer to watch the charts of prices relative to BTC rather than USD as I am buying and selling BTC to make my trades and not USD.

That said, the HIVEBTC chart is not looking like it is ready to turn back up - each bar is lower than the one before.

This is the shape I look for - a trade I made yesterday - buy LINK

Apr7LINK.jpg

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Check out the last post from @hivebuzz:

Feedback from the April 1st Hive Power Up Day
Hive Power Up Day - April 1st 2021 - Hive Power Delegation