Here at OptionsBrew.com, we believe a trading plan is already a 68% key to success.
Without further ado, here is our trade plan for the upcoming month of October 2020.
We are looking to buy an additional 13 shares of PFE for our Partnership fund.
At the end of the month, we should have 70 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.
As we are trading on margin, and our margin currently amounts to almost - EUR 12,000 we have decided to sell covered calls only during the month of October. There is one exception when we might add additional trades - when some of our covered calls get called away. And even then we will place credit spreads (if)
Trading on margin is fun, but we are looking to reduce our margin balance during the next month under -EUR 10,000
Here are a few candidates we are looking to get called away (AGN, ARCC, BAC, BCS, CRBP, DBK, ET, RDSA, TLRY)
We believe we could reduce our margin by some EUR 2000-3000 next month
During the month of October, we won't buy additional 20 shares of ARCC (as it was planned) unless our 100 shares with ARCC will get called away (October 16)
From covered calls/credit spreads - we are looking to take ~ $600 during the month of October.
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 September.
The other half will be withdrawn.
We are looking to raise our average monthly dividend above $9/mo at the end of the month. See: Dividend Stock Portfolio