2025 Investment Experience Exchange

Hello fellow Longbridge investors, it has been over a year and two months since I truly started investing on Longbridge. From being a complete novice to now, I have some humble thoughts I'd like to share with everyone.

Investment Focus: Centered on Growth Stocks & Values / Driven by the Pursuit of Free Cash Flow

Specific Approach: Continuously rotate around stocks I am bullish on, executing sell put and covered call operations. Whether it's call options or put options, I sell out-of-the-money options (5% to 10% below the current stock price).

Why Not Choose to Buy the Underlying Stock Directly?

I hope to have free cash flow every month, even every week. This kind of passive income is what I need. I am willing to sacrifice higher returns in exchange for lower volatility and more certain cash flow. At the same time, I asked myself a question:

If you were another investor, would you be willing to be your own investment counterparty?

My answer is: No

This is also the reason I chose this investment method.

What Kind of Targets to Choose?

Mainly choose the Big 7, Coca-Cola, and some stocks I believe are undervalued (primarily in traditional industries, as their business prospects are easier to calculate).

Risks

Risks mainly come from risk control. I previously had no clear understanding of position sizing and risk, often selling puts that would exceed my total cash position if exercised. However, I now have a bit more respect for leverage.

Returns

Approximately 42% from Jan 1, 2025, to present.

I hope to progress together with the Longbridge platform and all Longbridge community members in the future.