Operations this week
On October 4, I opened a short put option of Xiaomi Corp (HK stock code: 1810) with strike price at HK$19 and expiration on October 28. See here for detail. On the same day, I decreased my position of ARK Innovation ETF (US stock code: ARKK) at US$106.615, and bought more of Facebook Inc (US stock code: FB), NVIDIA Corporation (US stock code: NVDA) and Paypal Holdings Inc (US stock code: PYPL) at US$325.025, US$197.02 and US$252.22, respectively. See here for detail.
On October 5, I sold all of my ARKK position at US$109.28. See here for detail.
On October 6, I increased my position of Taiwan Semiconductor Manufacturing Company Limited (US stock code: TSM) at US$108.14. See here for detail.
Compare with the market
Weekly review
In the U.S. stock market, there was little change this week. The worst performer was Facebook, which was affected by reports of management’s inadequate protection of minors, and multiple applications under its group, including Facebook and Whatsapp, were malfunctioning on a global scale. It was dragged down by 3.74% for the week. The best performer continued to be Netflix (US stock code: NFLX), which continued last week’s upward trend and rose by 3.28% this week.
In terms of Hong Kong stocks, Tencent (HK stock code: 700) and Alibaba Group Holdings Ltd (HK stock code: 9988) performed brilliantly this week, rising 4.42% and 9.42% respectively throughout the week. Alibaba’s rise was mainly due to the US SEC’s disclosure of information of Charlie Munger in last quarter, which showed that Charlie’s investment company continued to increase holdings of Alibaba’s stock substantially. This is how the stock plays. This week’s Alibaba is no different from last week’s Alibaba, but the market price can differ by about 10%. It is only because of the optimism of a famous investor, so if you are too easy to be affected by unfavorable news, it will be difficult to achieve long-term investment success. China Merchants Bank (HK stock code: 3968) performed weakly this week, dropping 2.82% throughout the week.
In terms of options, a Xiaomi short put has just been added this week. As mentioned above, there are still 3 weeks before expiration. A lot of things can happen during this period. Personally, I prefer to exercise the option and buy Xiaomi shares at HK$19. But it really depends on whether the market gives a chance. The other one is a purely speculative China Evergrande (HK stock code: 3333) short put. The exercise price is at HK$2 with expiration on November 29, and there are less than two months to expire. Evergrande is currently suspended trading. It is reported that the Evergrande property will be sold. This is good for Evergrande which is right under liquidity pressure, but the suspension time is a bit longer than I expected. Let’s see how it will develop in the later period. Since it is only a very small bet, I am not too worried.
Concluding figures
Unrealized earning: 30.88%
Cash level: -15.92%
Record of last week
Stock portfolio
| Company logo | Stock code | Company name | Cost price | Closing price last wk | Latest price | % increase w/w | % increase overall | % share of portfolio |
|---|---|---|---|---|---|---|---|---|
 | 700 | Tencent Holdings Ltd | HK$ 529.004 | HK$ 461.4000 | HK$ 481.8000 | 4.42% | -8.92% | 7.01% |
 | 9988 | Alibaba Group Holding Ltd | HK$ 225.203 | HK$ 142.2000 | HK$ 155.6000 | 9.42% | -30.91% | 5.88% |
 | 3968 | China Merchants Bank Co Ltd | HK$ 39.498 | HK$ 62.0500 | HK$ 60.3000 | -2.82% | 52.66% | 5.26% |
 | 1810 | Xiaomi Corp | HK$ 19.53 | HK$ 21.3500 | HK$ 21.1500 | -0.94% | 8.30% | 4.68% |
 | MSFT | Microsoft Corporation | US$ 210.862 | US$ 288.7800 | US$ 294.8500 | 2.10% | 39.83% | 7.08% |
 | AAPL | Apple Inc | US$ 117.187 | US$ 142.6400 | US$ 142.9950 | 0.25% | 22.02% | 6.99% |
 | GOOGL | Alphabet Inc-CL A | US$ 1,686.121 | US$ 2728.5800 | US$ 2797.1200 | 2.51% | 65.89% | 6.97% |
 | NVDA | NVIDIA Corporation | US$ 99.607 | US$ 207.3100 | US$ 208.2700 | 0.46% | 109.09% | 6.89% |
 | FB | Facebook Inc | US$ 250.996 | US$ 342.7800 | US$ 329.9500 | -3.74% | 31.46% | 6.80% |
 | AMD | Advanced Micro Devices Inc | US$ 82.769 | US$ 102.4600 | US$ 105.0500 | 2.53% | 26.92% | 6.71% |
 | AMZN | Amazon.com Inc | US$ 3,125.461 | US$ 3280.3700 | US$ 3288.9400 | 0.26% | 5.23% | 6.70% |
 | TSLA | Tesla Inc | US$ 497.003 | US$ 774.8800 | US$ 785.5000 | 1.37% | 58.05% | 6.23% |
 | TSM | Taiwan Semiconductor Manufacturing Company Limited | US$ 100.706 | US$ 111.5600 | US$ 110.0400 | -1.36% | 9.27% | 5.31% |
 | NFLX | Netflix Inc | US$ 496.444 | US$ 612.8450 | US$ 632.9200 | 3.28% | 27.49% | 5.30% |
 | V | Visa Inc | US$ 196.522 | US$ 230.4600 | US$ 230.2700 | -0.08% | 17.17% | 3.18% |
 | MA | Mastercard Incorporated | US$ 323.704 | US$ 360.1800 | US$ 354.9600 | -1.45% | 9.66% | 3.05% |
 | AXP | American Express Company | US$ 100.435 | US$ 173.9400 | US$ 175.1500 | 0.70% | 74.39% | 3.01% |
 | PYPL | PayPal Holdings Inc | US$ 270.977 | US$ 264.3500 | US$ 260.0700 | -1.62% | -4.03% | 2.94% |
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