29 July, 2022 seen 30Welcome to the new renewed monthly stock options income reports. I stopped publishing monthly reports more than two…
Welcome to the twelve (#12) options trading income report - covering earnings I've made from trading options (puts, calls, vertical spreads) in the month of February 2020.
Wow, twelve reports, it means I have been an options trader for one year already. Time flies, it still feels it was yesterday I was hitting my head against the wall trying to figure it out what all the jargon mean. Fast forward a year later and it feels like one of the best inventions of our time.
Just like in January, this February I was shifting away from speculative trades on SPX index or Gold futures and instead focus on wheel strategy selling puts and calls on dividend stocks. Not all worked as planned, actually, nothing worked as planned, markets tanked at the end of the February, puts were deep in the money, but despite all this, I was able to record a net profit.
I started to experiment with ratio call back spreads this month (a huge thanks to my mentor, Massimo)
In February 2020 I opened 6 new put positions and 12 new vertical spreads.
Puts were sold in the wheel strategy frames on T, CSCO, PFE, SPCE and RDSA. SPCE and RDSA are my biggest gambles by now.
- Gross income from puts: $713.60
- Net income from puts: -$122.40
In total 7 trades on puts and 1 call were closed last month, which generated a negative net income of -$122.40
I closed with a loss RDSA and WPG (pretty big loss). Probably I could manage the RDSA trade but I was facing liquidity issue and I needed to free up some cash from the margin. Both WPG and RDSA loses could be avoided, but I decided to get rid of bad positions instead.
Verticals, futures, and back spreads were sold on the ES, GC, EEM, SPX and FXI. I plan to limit my trading in the future with SPX and GX, and have decided to experiment with ratio backspreads on ETF's for the next 3-6 months
- Gross income: -$55.80
- Net income: $622.40
Options trading income March 2019 - February 2020
In the last February, calls and puts generated negative -$122.49 net income, while trading with verticals, futures, and ratio back spreads made + $622.40 net income, in total $500.00(after commissions), which is a nice 1.56% monthly boost to the total portfolio.
Gross income last month from options trades: $657.80
The cumulative net earnings for 2020 now are $985.60 which is exactly 15.4% from my goal of 2020 ($6,400). On average, it would ask me to generate $541.42 every month for the next 10 months to reach my goal. It seems quite doable.
Goals for February 2021 Options Income
When trying to set goals for options income it's much harder and unpredictable than trying to forecast dividend income.
Anyhow I will try - my goal for February 2021 options trading income is minimum $800