Sold Call Option on Futu (call price $120, 20 Dec 2024)
I sold call options on Futu. The quantity is 50% of my position in Futu. On Thursday, Futu reached $122.
At $120, Futu is > 30x PE (TTM). Looks like my selling of called options have limited my gains for now.
Bought ICBC and CCB
I watched Master Leong Youtube videos and had followed him in some buying CCB and ICBC this week. Did not buy Bank of China, as its share price ran up.
The purchased stakes are not large, as earnings growth of China Banks is limited.
Probably, it is a pychological purchase i.e. to relieve my FOMO on this China/HK bull run.
Bought Conant Optical (2276)
Increased my position in Conant, as it is going to supply lenses for a MNC consumer electronic company and it is developing lenses for VR products.
Its share price did not run up in this China/HK bull market.
Conant produces spectable lenses and have substantial sales that are exports. Its sales and profit rose in 1H 2024, partly due to appreciation of USD against RMB. Now, as RMB revalues, its profit may be affected.
Nonetheless, with ROE of 28% and stable growth rate for past few years, the current PE of 12.5x is not expensive.
Thoughts
HK market is still rising this week (HSI up 11.2%), while China shares listed in US also rosed too. China Golden Week holidays ends next Monday. I expect inflows of funds from China into equities next week.
If there is no further stimulus from China, the bull run may hit a wall near end of next week or in the week after.
I will not be buying further into China / HK equities, as its weightage in my portfolio has risen to a rather high level. In the meantime, I am likely to let my positions run in the bear market.
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