Portfolio Value: $11,210
Weekly Change: +0.62%
YTD Return: +7.69%
Options Premium Collected: $171.20
As of March 20, 2026, the stock and options portfolio increased by 0.62%, closing the week at $11,210.
On a year-to-date basis, the portfolio is now up 7.69%, outperforming both the S&P 500, which has gained 4.72%, and NVIDIA, which is down 7.55% over the same period.
Most of the week was relatively quiet. No major adjustments were required, and several existing positions continued moving in the portfolio's favor. On Friday, after previous positions expired worthless, I opened two new credit spreads to continue generating premium income.
A Quiet Week Ends With New Credit Spreads
One of the advantages of selling options is that not every week requires constant activity.
This week was largely about patience. Existing positions behaved well, allowing previously sold options to expire worthless. Once those trades closed, I opened new positions to continue generating income.
The new positions were:
- NVDA Mar 27, 2026 165/155 Bull Put Credit Spread
- 2x BMY Jun 18, 2026 50/46 Bull Put Credit Spread
Credit spreads remain one of my preferred strategies because they allow me to define the maximum risk while using significantly less capital than cash-secured puts.
They can also provide a more capital-efficient way to generate premium, although the limited risk does not mean the strategy is risk-free. A sharp move in the underlying stock can still result in a meaningful loss.
Current Options Positions
- NVDA Mar 27, 2026 165/155 Bull Put Credit Spread
- 2x BMY Jun 18, 2026 50/46 Bull Put Credit Spread
- PFE May 15, 2026 25 Cash-Secured Put
- NVDA Nov 20, 2026 $120 Covered Call
The portfolio continues to combine three core options-income strategies:
- Credit spreads for regular premium generation
- Cash-secured puts for selective stock acquisition
- Covered calls on long-term holdings
Why I Occasionally Buy McDonald's Stock
This week, I also added another 0.1 shares of McDonald's stock.
Long-time readers may recognize this habit.
Occasionally, when visiting McDonald's with my daughter, I purchase a small amount of MCD stock. It serves as a simple way to reinforce a basic investing lesson: sometimes it makes sense to become a small owner of businesses you regularly use and understand.
Of course, regularly using a company's products does not automatically make its stock a good investment. Valuation, profitability, debt, competition, and long-term growth prospects still matter.
During our visit, the children jokingly discussed suing the restaurant over improperly sized chicken nuggets. While obviously not serious, it served as a humorous reminder that every business faces unexpected risks.
As investors, we should never assume that any company is completely immune from operational, legal, or reputational problems.
Reinvesting Premium Into Long-Term Holdings
This week was what I would describe as a booster week.
The previous Bristol-Myers Squibb credit spread expired worthless, allowing me to open a new position while collecting additional premium.
Part of that premium was reinvested into the portfolio:
- 1 additional share of BMY
- 0.1 additional shares of NVDA
- 0.1 shares of MCD
The BMY purchase increased the total position to eight shares.
Bristol-Myers Squibb is a dividend-paying company, making it a useful complement to a portfolio that remains heavily concentrated in growth-oriented technology stocks.
Meanwhile, the additional NVDA purchase increased the core holding to approximately 101.5 shares.
This reflects one of the main principles behind the portfolio:
Use options premium not only as income, but also to gradually increase ownership of productive assets.
Over time, small purchases can accumulate into meaningful positions, particularly when combined with dividends and continued premium generation.
$171.20 in Options Premium Income
This week's trades generated $171.20 in options premium income.
That makes it one of the strongest premium-generating weeks in the portfolio's history.
Realistically, I do not expect this pace to continue consistently.
Options income is rarely linear. Some weeks produce strong results, while others generate very little premium or require defensive adjustments.
For that reason, I focus less on the outcome of any individual week and more on the portfolio's long-term average performance.
A strong premium week is welcome, but it should not encourage larger positions or unnecessary risk-taking during the following week.
Margin Debt Reduction Progress
One of the primary objectives of the portfolio remains reducing margin debt while maintaining a core holding of at least 100 NVDA shares.
The current margin balance stands at approximately -$3,557.
At a sustained pace of $171.20 per week, the balance could theoretically be eliminated within approximately 21 weeks.
However, I do not expect premium generation to remain anywhere near that level consistently.
The broader goal remains unchanged:
- Reduce margin debt gradually
- Avoid unnecessary risk
- Preserve the portfolio's core positions
Whether the margin balance is eliminated during 2026 or the process extends into 2027 is ultimately less important than maintaining a sustainable strategy.
Paying down the balance too aggressively could require taking excessive risk or selling long-term holdings at an unfavorable time. Neither outcome would support the portfolio's broader objectives.
Looking Ahead
The primary position to monitor next week is:
- NVDA Mar 27, 2026 165/155 Bull Put Credit Spread
If the trade comes under pressure, the management plan remains unchanged:
- Roll the position forward when appropriate
- Prefer adjustments that collect additional credit
- Prioritize portfolio stability over short-term results
Rolling is not always the correct solution. Any adjustment must be evaluated based on the remaining risk, available premium, expiration date, and the outlook for the underlying stock.
The objective is not to avoid every loss. It is to manage losing positions in a way that protects the portfolio from disproportionate damage.
Key Takeaway
This week demonstrated how options income can serve several purposes at the same time.
Premium income generated cash flow, financed additional stock purchases, expanded dividend-producing positions, and moved the portfolio closer to its margin-reduction goal.
The objective is not to maximize income during any single week. The objective is to create a repeatable system that can continue generating income and building ownership over time.
Strong weekly results are encouraging, but consistency, capital preservation, and disciplined position sizing remain more important than headline premium figures.
Disclaimer
This trade journal reflects personal portfolio activity and is provided for educational and informational purposes only. It should not be considered investment advice, financial advice, tax advice, or a recommendation to buy or sell any security, option, derivative, or financial instrument. Options trading involves risk and may not be suitable for all investors. Past performance does not guarantee future results.