Option Recap - April 2018
|Option Activity Recap - April 2018|
So I embarked on a strategy to trade options in order to generate a higher income from the same capital base. There's more risk involved, especially if you venture into underlyings that you aren't willing to own, but the income generation can be quite substantial.
For the bulk of my option trading capital I stick with fairly simple things such as selling puts or calls and don't venture into the more complicated strategies that are out there.
The results for 2017 were fairly solid and encouraging, although the one way move higher in the markets meant that I missed out on potential gains as opposed to just buying the market.
This year started off strong with over $6,700 of realized profits through the end of March; however, April was a much different story. Unfortunately April turned out to have net losses primarily due to getting caught in a few moves that I just couldn't get out of the way of. Luckily though the losses were very manageable at just $63.21. It was definitely a big drop off from the first three months, but you won't hear me complaining about very tiny losses from time to time. Through the end of April my net profits, before tax, from option trading comes to $6,640.12.
If you're interested in using options, TastyWorks is one of the cheapest brokerage firms out there with just $1 per contract commissions to open and $0 to close. Commissions on stock purchases are $5. If you sign up for an account through this link and deposit at least $2,000 I will receive a referral credit that can be redeemed through TastyWorks' referral program.
I've been super busy with work and so my action level with both writing and interacting with everyone has suffered. Sadly that's a necessary side effect that comes with the territory of having a job.
Due to that and since May is already nearing it's end I'll be skipping the trade recap for April, but May's update will have a trade that went oh so wrong and then oh so right thanks to management, time and the markets recovering. So stay tuned!
Options trading has been a fun undertaking and something I will continue to explore going forward. My desire/attention for it might wane since it does require a lot more activity than just passive dividend growth investing, but the results so far are promising as a way to generate more return via option premium than from the dividends alone.
Going forward I plan to do a quick recap of each months option activity and also highlight one trade, winner or loser, that was closed in that month. If you'd like to check out my option trades in between updates feel free to check out my Option Summary page that I update usually on a daily basis.
Also if you're interested in options trading or have any questions feel free to leave a comment or shoot me an email.
Do you utilize an option strategy on top of your core dividend growth investing?