Options Trading Start
Last year March was when I stumbled upon this opportunity to make additional income largely due to a misunderstanding with my wife. I took her comment, “that I need to make more money…” to mean I literally needed to make more money for our household when in actuality she was referring to herself. Nonetheless, I went to work thinking what could I do and what could I leverage. I don’t remember what brought me to options trading exactly, but I remember thinking I had money to leverage from cash value life insurance that had grown in value that I could borrow against policy for 5%, but at a net of like 2% because the annual floor of growth for the policy is 3%.
I Learned 2 Trade Techniques
So, I learned two facet of options trading called the covered call and secured put and I put it into practice right away and I learned as I went the basics. To my surprise, I earned 7K last year and didn’t put quite enough aside for taxes, but that is a good problem to have. This year I have put 1/2 of 15% aside on any premiums I receive that way I’m close to even come tax season.
Current Trades
Last Friday, every 3rd Friday of the month, monthly options expire and I will demonstrate some of the positions I have or added for this month.
(two existing from when I purchased at $28). Today I sold 1 covered call options with a $28 strike price and one with $28.50 strike price that will expire on June 16th for $94 and $71 respectively.
(opened two new positions). Today I sold 2 secured put options with a $130 strike price that will expire on June 16th for $192 each.
(five existing positions from when I purchased at $70, $55, and $34.50). Today I still have open orders for this stock that will expire on June 16th for $39 each.
Long Term Sights
I have read and enjoyed the text, “The Richest Man In Babylon”,
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and practice paying myself first from the premiums at least 10% which I will funnel the premiums received from secured put/covered calls into my long term portfolio where I purchase either of two of the motifs (Os ETF 87/13 Allocation and Os Own What You Love) I have created on Motif Investing or stocks on Loyal3(now FolioFirst).
In Closing
Note: If you want to get into investing and it makes your head spin, you can follow my lead where I am investing money and purchase the below diversified motifs I mentioned above.
