Investment Portfolio Update: February 2025 Trading Activity

 

Market Overview and Strategy

As we move through February 2025, I've been strategically building positions in select dividend stocks and growth opportunities. This month's trading activity reflects a balanced approach between stable dividend-paying securities and high-potential tech plays.

Key Position Updates

Super Micro Computer (SMCI)

On February 19, I established a significant position in SMCI through a calculated scaling strategy:

• Total Position: 100 shares

• Average Cost Basis: $59.82

• Total Investment: $5,981.93

• Entry Strategy: Used multiple orders to build position from $56.85 to $60.26

• Rationale: SMCI has shown strong momentum in the AI infrastructure space

Reddit (RDDT) Options Assignment

A notable development occurred on February 14 with two option assignments:

• Position Size: 200 shares

• Average Entry: $198.75

• Total Investment: $39,750

• Type: Put option assignment

• Strategic View: Long-term hold on social media platform ahead of anticipated growth

Dividend Portfolio Building

Schwab US Dividend Equity ETF (SCHD)
Continued systematic accumulation throughout February:

• Multiple entries at price points between $27.44 and $28.29

• Regular small-lot purchases to average into position

• Focus on dollar-cost averaging strategy

• Total February Investment: ~$650

Verizon (VZ)

• Market Purchase: 1.99303 shares at $41.64

• Dividend Reinvestment: 0.562492 shares at $39.70

• Demonstrating commitment to dividend growth strategy

Portfolio Strategy and Outlook

My current investment approach balances three key elements:

1. Steady dividend income through SCHD and VZ

2. High-growth potential through strategic SMCI position

3. Long-term tech exposure via RDDT shares

Looking Forward

I'll continue monitoring these positions while maintaining my systematic investment approach. The mix of growth and income positions provides portfolio diversification while targeting both current income and capital appreciation.

#Investing #StockMarket #PortfolioManagement #DividendInvesting #GrowthStocks

Options Trading Week in Review: Wins, Losses

 As we wrap up another exciting week in the options market, let's dive into a detailed analysis of our recent trades, their outcomes, and the valuable lessons we can extract from them.

• Sold 1 contract of TSLA $327.50 Put (2/14) for $199.00 on February 10, 2025

• Bought back the same contract for $34.00 on February 13, 2025

• Net Profit: $165.00

This trade turned out to be a winner. I successfully capitalized on TSLA's upward movement, with the stock closing at $355.84 on February 14, 2025. By closing the position early, we locked in a solid profit and avoided any potential last-minute market swings.

• Sold 1 contract of SMCI $29.50 Put (2/14) for $63.00 on February 10, 2025

• Bought back the same contract for $3.00 on February 13, 2025

• Net Profit: $60.00

Another successful trade. The significant decrease in the option's price suggests that SMCI's stock price likely moved well above the $29.50 strike price.

• Sold 1 contract of TEM $60.00 Put (2/21) for $131.00 on February 10, 2025

• Bought back the same contract for $23.00 on February 11, 2025

• Net Profit: $108.00

This quick turnaround on the TEM put option demonstrates the benefits of actively managing positions and taking profits when available.

• Sold 1 contract of GOOG $195.00 Call (2/21) for $111.00 on February 10, 2025

• Position still open as of February 15, 2025

This position remains active, and we'll need to monitor it closely as we approach the expiration date.

• Assigned on RDDT $197.50 Put and $200.00 Put, resulting in the purchase of 200 shares at an average cost of $198.75 per share

• Sold RDDT $200.00 Put (2/14) for $820.00 on February 11, 2025

• Sold RDDT $197.50 Put (2/14) for $290.00 on February 13, 2025

• Sold RDDT $195.00 Put (2/14) for $199.00 on February 13, 2025 (expired worthless)

The RDDT trades resulted in mixed outcomes. While we were assigned on two put options, we also collected significant premiums from selling puts. The $195 Put expiring worthless added a small profit to offset some of the assignment costs.

1. : Our TSLA and SMCI trades benefited from well-timed entries and exits. Closing positions before expiration allowed us to capitalize on time decay and avoid assignment risks.

2. : The success of these trades, particularly TSLA, aligns with broader market trends. TSLA's stock price has been volatile, trading between $328.50 and $428.22 in 20253.

3. : By closing out positions early and taking profits, we demonstrated effective risk management. This strategy allows us to lock in gains and redeploy capital into new opportunities.

4. : The RDDT assignments remind us of the importance of being prepared to take ownership of shares when selling puts. These can be turned into longer-term holds or used for covered call strategies.

5. : Our portfolio included a mix of put and call options across different sectors, helping to spread risk.

I will be writing covered calls for the RDDT options that were assigned today and continue to trade.

Remember, while we've seen several successful trades this week, options trading always carries risks. It's essential to maintain a balanced portfolio and never risk more than you can afford to lose.

What strategies are you employing in the current market? Share your thoughts and experiences in the comments below!