May 2024 Stock Portfolio Update ($8,907)

At the end of May 2024, the total value of our stock portfolio was USD 8,907 (EUR 8,205). While this represents a slight decrease from the previous month, it is an essential part of our journey towards long-term growth and financial stability. 

Last month, our portfolios decreased by -155.48 EUR (-1.86%). This drop was primarily due to my mismanagement of trading options on micro gold futures.

Lessons Learned: The Pitfalls of Illiquid Markets

The decrease in our portfolio was a direct result of trading options on micro gold futures. Options on these futures are not very liquid, and when one of our options strikes was in the money, I was unable to adjust by rolling forward. 

This led to an avoidable loss of around USD 300. The key takeaway from this experience is to avoid trading options in illiquid markets. If you are interested in a more detailed account, you can read my longer article here: [Why I Stopped Selling Put Options on Micro Gold Futures (MGC)].

Short-Term and Long-Term Goals

One of my short-term goals is to grow our portfolio to USD 10,000. With USD 1,100 to go, I believe this target is achievable in the next few months through a combination of selling options and stock appreciation.

The main longer-term goal for our portfolio is to grow it to 100 fully covered Morgan Stanley (MS) shares, supported by an additional 100 British Petroleum (BP) shares. This strategy will enable us to sell covered calls on these shares while also benefiting from dividend payments.

Trading Strategy and Portfolio Composition

We actively sell weekly put options on MS and BP, reinvesting the premiums back into stocks. Additionally, we invest in shares of NVDA, ADBE, NFLX, PM, and others. Our current yearly dividend from the portfolio stands at USD 152.30, yielding 3.99%. While this is not yet enough to retire comfortably, it is a solid foundation upon which we can build.

June 2024 Plan

For the month of June, our plan includes the following purchases:

  • 0.05 NFLX shares every Monday
  • 1 MS share, 1 BP share, and 0.25 AMZN shares every Friday

To finance these purchases, we utilize funds available in our brokerage account and premiums generated from selling options.

Looking Ahead

The journey of growing our portfolio is both challenging and rewarding. By learning from past mistakes and continuously refining our strategy, I am confident that we will achieve our financial goals. Stay tuned for more updates and insights into our trading activities and portfolio growth.

Thank you for following along on this journey. If you have any questions or would like to share your own experiences, feel free to leave a comment below. Happy trading!