Welcome to the tenth (#10) options income report.
The last February we did a total of 61 trades / from which most were credit spreads and covered calls.
Month started good, bit agressive and soon turned against us, at the end of the month we had to start rolling forward some "bad" trades. We got some small problems with pot stocks - SNDL, HUGE (this was a bit gamble), but we are looking to get out in a reasonable timeframe. We rolled forward credit spreads on SOLO stock to avoid liquidty issues, if assigned. In short we still love SOLO, but just don't have enough liquidty to hold more. Some problems might be in the future with VXRT which dropper from $20 to $7, luckly as we are selling credit spreads, we have some nice downside protection.
There are 43 left open trades with expiry in the next months, with most (37) expiring this March
We managed to take $4,808.86 from options income during the month of February, which is about 12% of our $40,000 goal for 2021. In total, we have already reached about 20%. Awesome.
Half of the income will be withdrawn, while for the other half we bought 20 shares of O and 26 shares of NIO. Unlike our other buys, NIO is not a dividend stock, instead, we decided to invest in this stock as we see a huge potential growth value + very hefty options premium.
We now hold 0 shares of PBCT; 84 shares of O; 100 shares of PNNT; 46 shares with NIO and $1,200 cash in our dividend stock portfolio.
The dividend stock portfolio now generates an average of $20.91/mo dividend income.
Trading plan for March 2021 (Option trades & Stock Buys)
We are looking to buy additional 10-20 shares with AMWL, 10 KO, 10 INTC and 10-20 LI. Also at the end of the month, we will spend half of our options income to purchase O, NIO and JNJ stocks
Currently, we are holding: 70 VTRS, 30 AMWL, 64 O, 20 KO, 35 INTC, 8 LI and 15 NIO
For the month of March, we are looking to sell mostly covered calls only on positions already established. We might sell credit spreads on stocks called away. Also we are hoping to decrease our negative balance from -EUR 15,000 to about EUR -10,000. This could happen if SOLO, SDC, LI, SNDL or HUGE stock would be called away + additional options income from selling covered calls
From covered calls/credit spreads - we are looking to take ~ $2,000 during the month of March.
Goals for February 2022
We like setting goals, and when setting goals for February 2022 options income, we are looking to take at least $3,000 in options income.We hope to get there with more covered calls