Here at OptionsBrew.com, we believe a trading plan is already a 60% key to success.
Without further ado, here is our trade plan for the upcoming month of August 2020.
We are looking to buy an additional 11 shares of PFE for our Partnership fund. At the end of the month, we should have 45 PFE stocks - once we will have 100 shares of PFE we will start selling covered calls on it, see: Covered Call Trade Idea with Weekly Options - Generate $45/week from this Dow Jones list Dividend Stock.
Also, we are looking to buy 10 shares of KO, again once we will have 100 shares of KO, we will start selling covered calls on it.
Currently, we have 26 open trades expiring in the month of August. Most are credit spreads. Some are troubled trades, like our biggest suffering now is with BAC. Some are doing surprisingly well, like SDC. There are a few trades we are looking to close and not look back, like INGA dutch stock, F and TWO
As we are trading on Margin, we currently hold a negative cash balance of -EUR 8,857. This is quite a lot, and we are looking to end the month with -EUR 8.500. That would ask us to close a few trades. Possible candidates are F, INGA, TWO.
If our holdings with Inga (670), F (700) and Two (1200) will be called away with our current strike prices in August, we will free up $2,570 trading capital
Depending on the market, we believe it shouldn't be too hard to free up some EUR 2,000. Additional dividend income + options income should help minimize our negative cash balance
From covered calls/puts - looking to take ~ $750 during the month of July.
Half of the options income will be spent on additional O dividend stock buys. We should be able to buy at least 6 stocks with O stock at the end of August.
The other half will be withdrawn.
We are looking to raise our average monthly dividend above $8/mo at the end of the month. See: Dividend Stock Portfolio