Here at OptionsBrew.com, we believe transparency is the key to success and that's why we have decided to share our monthly options income reports covering details behind the scenes. That said welcome to the fifth (#6) options income report.
Last October we did in total 48 trades / from which most were covered calls and a few credit spreads. Last month we played a but with straddles during the earnings season. We made some quick buck, nothing impressive, but we learned that buying straddles might work pretty well during the earnings season.
There are 46 left open trades with expiry in the next months, with most (40) expiring in November.
We managed to take $548.24 from options income during the month of October, which is about 5.48% from our $10,000 goal for 2020. On average it will ask us to make at least $2,257.5 every month for the next 2 months to reach our goal. Now, most probably, that is not going to happen. But anyhow, having a goal is a good start already.
Here are the stocks we traded options on in October 2020: AMS:RDSA, FRA:DBK, TLRY, AMC, PEI, ET, AMS:AGN, EPA:AF, AMS:INGA, BCRX, CRBP, BAC, T, SDC, GT, CLF, SPCE, AAL, M and HEL:FORTUM
Wow, a lot of European stocks.
We traded both weekly and monthly options. This is the plan we would like to keep with in the future. Weekly options are a very powerful tool to generate income.
Our top 3 stock we collected premium: BCRX, AMS:AGN and CLF.
Our best trades in October was with TLRY, BCS, ARCC and FRA:DBK
- Closed Covered Call on Tilray (NASDAQ:TLRY) with +$36.8 Profit (6.5% yield in 50 days / 47.45% annualized)
- Closed Covered Call on Barclays (NYSE:BCS) with +$30 Profit (6.34% yield in 24 days / 136.12% annualized)
- Closed Covered Call on Ares Capital Corporation (NASDAQ:ARCC) with +$44 Profit (3.4% yield in 65 days / 17.61% annualized)
- Closed Deutsche Bank (FRA:DBK) Covered Call with +34.46 EUR Profit (4.67% yield in 25 days)
We kept struggling with BAC stock. We hope for some positive developments with this stock during the month of November, Also problematic stocks CRBP and AMC
On an overall - decent month
Half of the income will be withdrawn, while for the other half we bought 5 shares of O.
We now hold 100 shares of PBCT and 23 shares of O in our dividend stock portfolio. Once there will be 100 shares of O stock, we are going to sell covered calls on it
The dividend stock portfolio now generates an average $9.66/mo dividend income. This latest buy gives us a small +$0.99 monthly boost.
OptionsBrew.com was launched at the end of April 2020, during the month of September our options trading website was visited by 414 users from 50 countries.
Average session duration 4 min 34 seconds.
We now have 85 e-mail newsletter subscribers.
Launching a new website from a scratch might be a daunting task, it will take us many months before we will start seeing a sizeable community here. We will be quite happy if we will reach 1,000 users per month by the end of the year.
Founders of OptionsBrew.com hope their SEO expertise, Drupal building, and copywriting skills will help to achieve these numbers in a timely manner.
Goals for October 2021
We like setting goals, and when setting goals for October 2021 options income, we are looking to take at least $800 in options income.