option trading

The Best Options Trading Strategies for Generating Income

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Options trading can be a powerful way to generate income for traders who are willing to take on some additional risk. However, it’s important to note that options trading is not for everyone and requires a certain level of experience and expertise. Two of my favorite options trading strategies are cash-secured puts and covered calls. The best when implemented on dividend aristocrat stocks. I have played out with many other options trading strategies, like iron condors, straddles, and strangles…


7 Dividend Stocks To accumulate while selling Put options for extra income

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In today's article, I'm going to talk about 7 dividend stocks I don't mind having in my portfolio and how I'm generating additional semi-passive income by selling put options (or credit spreads) on them. Disclosure:  I'm not a financial advisor and I don't give you any advice here, I'm just sharing my own experience. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset. …


Start Over - Options Trading

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On Monday, July 19, 2021, I decided to close all my existing positions with LYNX Broker (Interactive Brokers) and start fresh.  After closing all positions and selling off all stock I was left with little more than EUR 8,000 I decided to start over by selling credit spreads on a few select stocks and from the premium to buy dividend stocks (preferably dividend aristocrat stocks) My first new trade was with FCEL, where I sold 5 credit spreads, collected some $181, and from the premium bought…


What Happens to Options While Stock is Doing Reverse Split

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Stock splits are not rare, they happen quite often.  In this article, I'm going to try to shed some light on what happens to options when stock is doing a reverse split. Make sure to check out my newsletter: Covered Calls with Reinis Fischer On March 24, 2020, I bought both call and put ratio back spread options on XOP ETF. A couple of days later I was reading on SeekingAlpha that XOP is doing a reverse stock split (4:1) My first question was  - what happens to my options now I'm currently…


Income Goal For Dividends and Option Trading Q1 2020 ($1,200/mo)

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I have a goal to make at least $1,200 per month for the next 3 months of the year in dividend income + selling options. Every quarter I create a brief income plan/goal laying out plans for the next three months. Last quarter (Q4 2019) I had a plan to take $1,000/mo from the financial markets, unfortunately, it didn't work as expected. In total, I made slightly more than $3,000 during the last quarter, but not all months were even so, for example, October was the best income month so far with…


Tesla Stock Project

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It was on early November 5th, 2019 morning, I was reading an interesting story about a guy buying a Tesla car for his sons 9th birthday, here is the story in brief: What is #TSLA4Tesla project? I am not into cars. My son, Arian, 8 years old, is different. He loves cars. Sometimes back, he got in love with Tesla. He asked me to buy a Tesla. I didn't need a new car. However, seeing Arian's craze for Tesla, and my love for trading stocks, we made a deal to trade TSLA stocks to see if we can buy…


Selling Covered Calls: ITM vs OTM

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Selling covered calls has been one of my favorite options trading strategies. A covered call refers to a transaction in the financial market in which the investor selling call options owns the equivalent amount of the underlying security. To execute this an investor holding a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the "cover" because it means the seller can deliver the shares if…


Income Plan From Dividends and Option Trading Q4 2019 ($1,000/mo)

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I have a plan to make at least $1,000 per month for the next 3 months of the year in dividend income + selling options. Here is the long story short - I've been investing in dividend stocks since early January 2017, fast forward to the first quarter of 2019 and I've started writing puts and calls on dividend stock I own or would mind having in our stock portfolio. Option writing has given a real boost to the monthly income There has been a tremendous growth both in earnings and knowledge…


Investment Goal #8 - Limiting Margin to Max 80% from Stock Portfolio for Options Trades

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Options trading has been my latest discovery in the wonderful world of finances. It took me about 6 months to get started. Right now I trade put sells on stocks I wouldn't mind to have or make calls on stocks I already have. Investment Goal #7 - Selling Puts to Own / Generate Income So far I have managed to make the most 0.9% in a month in options trade from the value of the total portfolio. As my portfolio consists of many positions (not only stocks), I would say 0.9% is a decent number.…


Trading Bitcoin / Ethereum Options (Selling Puts) on Deribit - Part 1

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Deribit is my latest discovery from the crazy crypto world. It all started with simple buy-and-hold operations back in 2017. What followed was, a day trading on Poloniex,  I even built a custom Ethereum mining rig. I have played with cloud mining contracts from hashflare,  and now I've found my way into Bitcoin / Ethereum options trading. It's not that I would call myself an expert in options trading, in fact, I have made just a couple of put sales in the regular stock market - I tend to…