Goal to Reach $10,000 In Trading Income from Selling Covered Calls till the end of 2020

For the past couple of weeks, I've been working on my latest idea of developing an options learning and trading website. The website you are currently reading - optionsbrew.com

Initially, I wanted to make a website for 0 DTE SPX traders, but I understood that day trading is not my thing, and I never have been successful in it in the long run. For me, it always has been one step forward, two steps backward. On the other hand selling, puts and calls on dividend stocks have proved to work out very well in the past.

I was able to generate about $7,000 in 2019 by selling puts and calls. Tripple the income I got from dividends. 

Then I lost focus and started to experiment with selling iron condors on SPX, options on gold futures e.t.c The more I made, double I lost. There is a saying - it eats like sparrow, but shits like an Elephant. That's so true when trading without underlying asset, cash settled options. 

The more I thought, the more I realized that covered calls are my thing. I have been working my butt to save and invest for 100 shares of CSCO, 100 shares of PFE, 100 Shares of WFC and etc. So I could sell covered calls, collect the dividend and enjoy a nice income - semi-passive income

As a Drupal developer, I found it also interesting to build this website from scratch using Drupal 8.

For the launch, I'm using the Minimum Viable Product approach - just the bare minimum, with features to be added over time.

To add some spice and make me accountable I have decided to reach $10,000 in trading income from selling covered calls till the end of the year (2020)

This is not going to be easy goal, as currently, I'm making about $300/mo from options trading, and if things would continue as it is I could make say 300*8 or $2,400 by the end of the year. $10,000 goal makes me think of creative ways to quadruple options income. 

One of the ways I see this working is buy/write wheel strategy, buy 100 shares, sell 1 contract with higher call strike, collect premium if the strike is challenged keep premium, and realize value gain.

Despite Warren Buffet is dumping stocks now, I believe we are at one of the lowest points in the market and there are a lot of good buying opportunities.

Also, I plan to mobilize capital and start selling more than 1 contract, I don't think I will start selling 50 or 100 contracts in 2020, but I can see selling 5-10 contracts with the stock under $5 or 2-5 contracts with the stock under $10

50% of the income should be kept to buy more contracts or quality dividend stocks from the Dow Jones list. The other 50% will go to my personal and website expenses. Speaking of them:

The cost to launch a website/blog

  • Virtual Private Server from Linode: $5/mo
  • A couple of domains: $50 (I was not sure which domain to choose, so bought 3)
  • To developer (me): $0

To make my goal transparent once in a month I will share detailed options income update.

If you would like to contact me and discuss things, drop me a message here

Reinis Fischer

founder of OptionsBrew.com

Tbilisi, May 3, 2020